Salter Brothers, a leading Australian alternative investments manager, has secured a Sustainability-Linked Loan from the Commonwealth Bank of Australia (CBA) to support its ongoing expansion, with sustainability firmly embedded in its operations.
Salter Brothers manages a number of luxury retreats across Australia including the recent acquisition of three Bannisters hotels on the New South Wales North and South Coasts, which CBA was pleased to support with an increase in the Sustainability-Linked Loan.
Under the Sustainability-Linked Loan, interest rates will be tied to Salter Brothers' performance on key sustainability targets across certain assets within the portfolio. These include energy efficiency measures, reducing emissions from energy consumption and exploring onsite renewable energy solutions, as well as increasing the number of properties that hold relevant hospitality sustainability certifications, including EarthCheck and Eco Tourism.
Paul Salter, Managing Director at Salter Brothers, said: "We are proud to partner with CBA on this Sustainability-Linked Loan which underscores our commitment to driving positive environmental outcomes through our investments."
Mei McNamara, ESG Manager at Salter Brothers added: "Our retreats have made continued progress in sustainability, through a range of diverse initiatives. We have committed to achieving third-party green certifications aligned with global best practices. These certifications enhance sustainability efforts, establish meaningful targets for each property, and strengthen trust with our customers.
"We are also transitioning to a low-carbon economy across all our hotels. Our retreats are already equipped with EV chargers, reflecting our dedication to sustainability. To further advance this commitment, the loan will support the expansion of our renewable energy generation and fund further energy efficiency projects. These initiatives create credible and tangible pathways toward a more sustainable future."
CBA Executive General Manager, Major Client Group, Chris Williams said: "We're delighted to continue our ongoing partnership with Salter Brothers by supporting their acquisition of the Bannisters hotels with sustainability at the forefront of their operations.
"As a leading bank to the hospitality sector, it's pleasing to see an increased focus on sustainability from the industry with more clients using sustainable finance to support growth and acquisition of new assets. CBA is proud to add Salter Brothers to our growing list of hospitality clients who are firmly embedding sustainability in their operations and financing structures."
CBA acted as sole sustainability coordinator and lender in the deal.
The Sustainability-Linked Loan is part of CBA's commitment to supporting Australian businesses in achieving their sustainability goals. CBA has also supported sustainable finance transactions in the hospitality sector for Crystalbrook and Howard Smith Wharves (now Artemus).
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