Vicinity Centres' property in Chadstone, Victoria. (Photo: Google Maps)Vicinity Centres' property in Chadstone, Victoria. (Photo: Google Maps)

Vicinity Centres has established its inaugural green bond programme with the issuance of AUD300 million of six-year AUD-denominated medium term notes.

Subject to the satisfaction of customary conditions precedent, settlement of the senior and unsecured notes is expected to occur on 2 June 2022, said the REIT on 27 May.

The green bond has been issued under Vicinity’s Sustainable Finance Framework.

Both the framework and the green bond pre-issuance process underwent assurance by KPMG, the REIT noted.

The Notes are to be issued by the responsible entity of Vicinity Centres Trust and were priced at a margin of 165 basis points over the relevant swap rate.

“We are delighted with the response we received for our inaugural green bond issuance”, said Adrian Chye, Chief Financial Officer, of Vicinity Centres.

“Despite increased volatility in local and offshore bond markets in recent weeks, strong demand from investors delivered an oversubscribed issuance”, he added.

Bank of America, Commonwealth Bank of Australia, Scotiabank and Westpac Banking Corporation acted as joint lead managers for the issue.

Vicinity Centres was last done on the ASX at AUD1.88.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.