Royal Adelaide Hospital, a key asset in AMP Capital’s Community Infrastructure Fund (CommIF), has secured the world’s largest Sustainability Loan in the healthcare sector, and the largest project finance Green and Sustainability Loan in Australia.
Sustainability loans are issued by governments, organisations, and companies to exclusively finance environmental and climate projects and those that offer strong social benefits. This sets them apart from standard loans, where the issuer has the freedom to use the money raised for a variety of purposes, which may or may not be centred on ESG issues.
The landmark $2.2bn transaction involving a consortium of 18 banks is the largest green loan for a PPP in Australia to date, the first to be issued with a social loan component in Australia and the largest combined green and social loan in the healthcare sector globally.
The green loan was structured in accordance with Green Loan Principles and Social Loan Principles 2021 issued by the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association and was certified by DNV GL Business Assurance Ltd.
Royal Adelaide Hospital was the first large-scale hospital complex in Australia to achieve a 4 Star Green Star – Healthcare ‘As Built’ rating from the Green Building Council of Australia (GBCA).
CommIF Portfolio Manager, Charles Savage said: “AMP Capital is delighted to have played a part in delivering the world’s largest Sustainability Loan in the healthcare sector and furthering the ESG objectives of CommIF that we know resonate with client expectations”.
The Hospital is a Public Private Partnership (PPP) between Celsus and the South Australian Government. CommIF owns 17.26% of Celsus, with clinical services provided by SA Health through the Central Adelaide Local Health Network.
CommIF invests in brownfield, social infrastructure PPP assets in Australia and New Zealand, in sectors such as education, health, justice, water, transport, community housing and recreational facilities. The fund now has 18 assets worth more than A$5.6 billion (on a pro-rata ownership).
About AMP Capital
AMP Capital is a global investment manager with A$189.8 billion in funds under management as of 31 December 2020. AMP Capital has a heritage and strength in real estate and infrastructure, as well as considerable experience in fixed income, equities and multi-asset solutions. It is 100% owned by AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.