Metlifecare has completed one of the largest-ever sustainable refinancing deal worth $1.25 billion.
Metlifecare plans include increasing its landbank and geographical diversification, building six certified 6-Green Star villages and increasing its number of dementia beds by six times. Photo: 123RF
All the retirement village operator's debt facilities were converted into a sustainability-linked loan tied to social and environmental goals.
The loan was made up of $600m of existing debt and $650m new debt.
Metlifecare will pay a lower interest rate on the loan for achieving its targets, but would have to pay higher rate if it fell short of satisfying the key performance indicators (KPI).
Chief executive Earl Gasparich said the loan objectives were aligned with its five-year strategy.
"We've focused on areas that are of critical importance not only to New Zealand, but also to our staff and residents."
He said the company would increase its landbank, geographical diversification and development pipeline, build six certified 6-Green Star villages, expand aged care offerings and its number of dementia beds by six times.
"To deliver on this, we will establish a science-based target, aligned with the goal of limiting global warming to 1.5°C through reducing our greenhouse gas emissions," he said.
"Likewise, this loan encourages Metlifecare to continue to increase the amount of care provided in our portfolio, helping us to alleviate the shortage in New Zealand.
"It incentivises us to build our future care offerings to the highest level of green building rating possible in New Zealand."
ANZ New Zealand and Westpac NZ helped Metlifecare with the debt arrangements.
As part of the loan arrangement, EY would provide assurance services on the targets.
The latest arrangements followed Metlifecare's earlier designation of an existing listed bond into a sustainability bond on 26 October.