QuadReal Property Group has raised $400 million as part of the company’s efforts to reduce its environmental footprint.

Vancouver-based QuadReal has closed on a green bond senior note offering made on a private-placement basis to accredited investors in Canada, the company announced. The notes were issued by BCI QuadReal Realty (BQR), an actively managed pooled investment portfolio of real estate and real estate-related investments. 

All of the assets are held in trust by BQR, which serves as the primary issuing entity of unsecured notes for QuadReal parent British Columbia Investment Management Corporation’s real estate program. QuadReal is BCI’s real estate investment arm.

“As a full-scale development, investment and property management company, our green bond framework offers a well-established sustainable financing platform that continues to resonate with investors, and reflects our commitment to the communities in which we operate,:” said said Tamara Lawson, QuadReal’s CFO, in a news release.

The senior notes are rated AA (low) with a stable trend by ratings agency DBRS.

The offering was made by a syndicate of agents co-led by CIBC, Toronto-Dominion Bank, Scotiabank, and RBC.  Meanwhile, BMO, Mizuho Bank Securities, National Bank, SMBC, Desjardins, and Wells Fargo served as co-managers.

The green bond framework complements QuadReal’s commitment to achieving global environmental and social governance benchmarks. Since launching in 2020, BQR has issued about $1.2 billion in green bonds.

Under the framework, net proceeds are allocated to eligible QuadReal green projects, including Oakridge Park in Vancouver. Oakridge is a joint-venture project between QuadReal and Vancouver-based Westbank.

The companies are redeveloping the former Oakridge shopping centre as part of a five-year project featuring mixed-use components that include multi-residential towers.

The green bond framework is also designed to help QuadReal decarbonize its entire portfolio by 2050.

Image: QuadReal/Westbank