Multinational construction, property and infrastructure company Lendlease announced that it has raised $500 million through its inaugural green bond issuance. The company said that deal is the largest green bond issued by an Australian non-financial corporate.

According to Lendlease, proceeds from the 7-year fixed rate 4.4% coupon bond will go towards green buildings and earmarked to eligible projects in Lendlease’s global portfolio of 22 major urbanisation projects which includes Sydney’s Barangaroo, the UK’s International Quarter London, Singapore’s Paya Lebar Quarter and Chicago’s Southbank. These projects aim to drive a range of sustainability initiatives including lowering the buildings’ carbon emissions, reducing the environmental impact of materials and delivering health and wellbeing benefits.

Tarun Gupta, Lendlease Group Chief Financial Officer, said:

“Sustainability is a key strategic priority for Lendlease. It is core to our belief that great places deliver positive environmental and social outcomes and are a differentiator and driver of value creation.

“The significant demand for this bond is incredibly exciting as it clearly demonstrates the strong interest the investment community has in supporting sustainably driven projects.

“It marks another sustainability benchmark for Lendlease which also includes Barangaroo being named Australia’s first carbon neutral precinct, and APPF Commercial the world’s most sustainable fund.”

Joint Lead Managers of the transaction included ANZ, Commonwealth Bank of Australia, HSBC, NAB and SMBC Nikko.