Leading Australian retirement operator Levande has successfully extended and upsized its loan facilities, securing an A$1.5 billion Sustainability-Linked Loan (SLL). This facility – the largest SLL to date in Australia’s retirement living sector – directly ties Levande’s pricing terms to social and environmental targets, underscoring the company’s transformative ambitions.

This financing aligns with Levande’s growth strategy to develop new retirement villages tailored for Australia’s aging population. Importantly, the SLL implements annual performance targets for three ambitious Key Performance Indicators (KPIs) that target impactful sustainability outcomes:

• Greenhouse Gas Emissions Reduction: Levande will work to decrease emissions in alignment with the international Science Based Targets Initiative’s (SBTi) new Buildings Sector criteria (from FY2026);
• Sustainable Design Integration: New development activities will target incorporating sustainable building design practices; and
• Resident Wellbeing: Levande commits to enhancing the wellbeing of its residents with target outcomes that surpass community averages.

To incentivise these targets, Levande will benefit from a lower interest rate if the targets are met, but will face higher rates if it falls short, reinforcing accountability at every step.

Kevin McCoy, Chief Executive Officer of Levande, said, “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.”

Tobias Küng, a Partner within EQT Infrastructure’s advisory team, said, “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 exemplifies this vision.”

Levande engaged DNV Business Assurance Australia to provide a second-party opinion on the alignment of the SLL with the Sustainability Linked Loan Principles (2023) published by the Asia-Pacific Loan Market Association.

The SLL was arranged with the support of ANZ and Westpac as Mandated Lead Arrangers and Bookrunners, in addition to Joint Sustainability Coordinators. Commonwealth Bank of Australia also acted as a Joint Sustainability Coordinator and Mandated Lead Arranger.