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- Oceania Healthcare (OCA) implements its $500 million five-year sustainability-linked loan (SLL) to support its commitment to sustainable growth
- The company says over two-thirds of Oceania’s debt-funding is now tied to its ambitious environmental and social sustainability goals and targets
- As part of the SLL, Oceania will pay a lower interest rate on the loan for meeting the sustainability targets and will pay a higher interest for failure to do so
- To enable the SLL and to support any future sustainability-linked financing that Oceania undertakes, the company has created a sustainable finance framework
- Shares in Oceania Healthcare hold steady at 84 cents as of 2:07 pm AEST
Oceania Healthcare (OCA) has implemented its $500 million five-year sustainability-linked loan (SLL) to support its commitment to sustainable growth.
The company said over two-thirds of Oceania’s debt-funding is now tied to its ambitious environmental and social sustainability goals and targets.
The SLL is linked to three key performance indicators that cover environmental and social aspects of Oceania’s sustainability ambition and business strategy.
The sustainability performance targets (SPTs) are to reduce greenhouse gas emissions in line with targets approved by the international Science Based Targets initiative, increase the diversion of construction waste from landfill and improve resident experience and wellbeing.
As part of the SLL, Oceania will pay a lower interest rate on the loan for meeting these SPTs and will pay a higher interest for failure to do so.
“Linking our loan to our sustainability goals and measures shows that Oceania is serious about sustainable growth,” Chief Financial Officer Kathryn Waugh said.
“Today’s announcement represents a step forward for Oceania in its sustainability journey.”
To enable the SLL and to support any future sustainability-linked financing that Oceania undertakes, the company has created a sustainable finance framework.
The framework outlined the company’s approach to sustainable finance instruments and sets out the process, criteria and guidelines under which it intends to issue and manage SLLs.
Further, the framework is aligned with and complementary to Oceania’s sustainability
framework and strategy, and is also aligned with the most recent sustainable finance market standards.
The company worked with ANZ Bank New Zealand (ANZ) as its sustainability coordinator to develop the SLL.
Shares in Oceania Healthcare held steady at 84 cents as of 2:07 pm AEST.