InfraRed Capital Partners secures the largest Sustainability Loan for new Royal Adelaide Hospital

15 July 2021 Investments

InfraRed Capital Partners Limited (“InfraRed”), on behalf of its Infrastructure Fund III, is pleased to announce that, alongside the Celsus consortium, it has successfully completed a refinancing of the new Royal Adelaide Hospital (“Hospital” or the “Project”).

With this refinancing, the Project has replaced its existing debt facilities with the world’s largest Sustainability Loan in the healthcare sector, and the largest project finance Green/Sustainability Loan in Australia. A Sustainability Loan is an instrument which is used to finance both green and social projects.

This landmark A$2.2bn transaction recognises the green and social credentials of the Project and its contribution to the United Nations Sustainable Development Goals (SDGs), being:

    • Green Building: the 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). Some examples of the key sustainability aspects of the design include energy and water efficient fittings a co-generation system that turns waste heat into energy to heat the building.
    • Access to Essential Healthcare Services: The social impact of the Hospital is seen in the daily delivery of a range of complex and essential services as the largest public hospital in South Australia.
    • Access to Essential Educational Services: The Hospital is also South Australia’s largest accredited teaching hospital offering a range of training positions across medical, nursing, allied health, health sciences and pharmacy areas.

The portfolio company, Celsus, has developed the Celsus Green and Social Financing Framework (the “Framework”) which will govern the Sustainability Loan. In line with best practices, this Framework has been verified by DNV Business Assurance Australia, to ensure alignment with the internationally recognised Green Loan Principles 2021 and Social Loan Principles 2021.

InfraRed has been an investor in the Project since 2011, demonstrating our long-term commitment to sustainable investment. The Project also aligns with InfraRed’s prioritised SDGs being SDG 3 – Good Health and Well-being, SDG4 – Quality Education and SDG13 – Climate Action.

Sven Stubican, Head of Australia and New Zealand at InfraRed, said: “We are very pleased to have reached this important milestone having worked closely with our Project partners over the last decade. This Project aligns with InfraRed’s objective to invest in assets which maximise the sustainability outcomes for the local communities in which they serve whilst also supporting the transition to a low-carbon economy.

This Sustainability Loan follows a number of other ESG-linked credit facilities which InfraRed has recently refinanced for other funds under management, demonstrating our commitment to embed sustainability into every aspect of our role as fund manager.”

Further information about these facilities and InfraRed’s approach to sustainability can be found in InfraRed’s Sustainability Report.

About InfraRed Capital Partners

InfraRed Capital Partners is an international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, New York, Sydney, Seoul and Mexico City. With around 200 professionals, it manages US$12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed Capital Partners is authorised and regulated in the UK by the Financial Conduct Authority.

InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has been awarded triple A+ score in 2019 PRI assessment.

InfraRed is a part of SLC Management which is the institutional alternatives and traditional asset management business of Sun Life. Over the past 30 years InfraRed has established itself as a highly successful developer and custodian of core infrastructure, renewable energy and real-estate assets that play a vital role in supporting sustainable communities.

About the Project

Commissioned in September 2017, the Royal Adelaide Hospital is the most advanced hospital in Australia. It is managed by Celsus under a Public Private Partnership framework with the South Australian Government.

The hospital is equipped with 700 overnight beds (including 40 mental health beds) and 100 same day beds and provides critical health care infrastructure and health care education to the people of South Australia.

Further reading