Oceania announces $500m sustainability-linked loan

Wednesday 29th June 2022

Oceania Healthcare Limited (“Oceania”) is pleased to report that it continues to innovate with the implementation of a $500m five-year Sustainability-Linked Loan (“SLL”). This exciting development supports our commitment to sustainable growth with over two-thirds of Oceania’s debt-funding now tied to ambitious environmental and social sustainability goals and targets.

The SLL is linked to three Key Performance Indicators (“KPIs”) that cover environmental and social aspects of Oceania’s sustainability ambition and business strategy. Oceania’s Sustainability Performance Targets (“SPTs”) associated with the SLL are to:

1. Reduce greenhouse gas emissions in line with targets approved by the international Science Based Targets initiative.

2. Increase the diversion of construction waste from landfill.

3. Improve resident experience and wellbeing.

Oceania will pay a lower interest rate on the loan for meeting these SPTs but will have to pay higher interest if it does not meet these SPTs.

Oceania’s Chief Financial Officer, Kathryn Waugh, said “Linking our loan to our sustainability goals and measures shows that Oceania is serious about sustainable growth. Today’s announcement represents a step forward for Oceania in its sustainability journey.”

Oceania worked with ANZ Bank New Zealand Limited (“ANZ”), as sustainability coordinator, to develop the SLL.

Dean Spicer, Head of Sustainable Finance, ANZ, said “The establishment of a meaningful measurement of care residents’ wellbeing is an important development for the sector. Social impact is challenging to quantify, and by including this holistic assessment of social, physical and psychological wellbeing, Oceania is further encouraged to support improvements in resident experience.”

To enable this SLL, and to support any future sustainability-linked financing that Oceania undertakes, Oceania has created a Sustainable Finance Framework (“Framework”). The Framework outlines Oceania’s approach to sustainable finance instruments and sets out the process, criteria and guidelines under which it intends to issue and manage SLLs. 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 being the Asia-Pacific Loan Market Association Sustainability-Linked Loan Principles (2022) (“Market Standards”).

Ernst & Young provided limited assurance over the Framework, the selected KPIs and sustainability performance targets against internationally recognised Market Standards.

A copy of Oceania’s Sustainable Finance Framework and EY’s Limited Assurance Report can be found on Oceania’s website under “Sustainability”: https://www.oceaniahealthcare.co.nz/investor-centre/sustainability.

The Lenders to the syndicated facility included ANZ, ASB and ICBC.

Contact Details:

Kathryn Waugh

Chief Financial Officer

09 361 0350

ENDS

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