Australian retirement living operator Levande has achieved a significant milestone, securing a record-breaking $1.5 billion Sustainability-Linked Loan (SLL). This financing, the largest of its kind in Australia’s retirement living sector, ties Levande’s loan pricing directly to ambitious social and environmental targets.
Central to the loan agreement are three transformative Key Performance Indicators (KPIs) designed to drive measurable impact:
• Greenhouse Gas Emissions Reduction: Levande will align with the Science Based Targets Initiative’s (SBTi) new Buildings Sector criteria starting from FY2026.
• Sustainable Design Integration: Future development activities will prioritise sustainable building practices.
• Resident Wellbeing: Levande is committed to improving the quality of life for its residents, exceeding community wellbeing benchmarks.
To reinforce accountability, Levande will benefit from reduced interest rates upon meeting its targets, while falling short will result in higher rates.
Levande CEO Kevin McCoy highlighted the initiative’s importance: “Levande is committed to addressing critical areas that impact not only our business, staff and residents but also the wider community. In our efforts to protect the environment for future generations, we’ve built on our ambition embedded in our Sustainability Strategy, spanning actions from reducing greenhouse gas emissions to integrating sustainable design standards into new village developments. Most notably, we’ve set a wellbeing KPI for our residents, putting the ‘S’ in ESG at the forefront to drive an even greater impact.”
EQT Infrastructure, a key supporter of Levande’s sustainability agenda, echoed these sentiments.
Tobias Küng, Partner in EQT Infrastructure’s advisory team, shared, “EQT is proud to support Levande in advancing its sustainability and social strategy for the benefit of communities and residents through this Sustainability-Linked Loan. As a purpose-driven organisation, we focus on sustainable growth across our portfolio, and Levande’s commitment to integrating environmental and social objectives into its core operations strongly exemplify this vision.”
To ensure the loan’s alignment with the Sustainability Linked Loan Principles (2023), Levande engaged DNV Business Assurance Australia for a second-party opinion.
The SLL was facilitated by a consortium of financial institutions, with ANZ and Westpac acting as mandated lead arrangers and bookrunners. Commonwealth Bank of Australia also played a pivotal role as a joint sustainability coordinator and mandated lead arranger.
