Salter Brothers secures sustainable loan from CBA
Alternative investments manager Salter Brothers has secured a Sustainability-Linked Loan from the Commonwealth Bank of Australia (CBA) to support its ongoing expansion.
The CBA was attracted to Salter Brothers’ focus on sustainability across its Australian luxury retreats including the recently acquired Bannisters hotels on the New South Wales North and South Coasts.
The loan sees interest rates tied to Salter Brothers' performance on key sustainability targets including energy efficiency measures, reducing emissions from energy consumption and exploring onsite renewable energy solutions.
The company will also be required to increase the number of properties that hold relevant hospitality sustainability certifications, including EarthCheck and Eco Tourism.
“We are proud to partner with CBA on this Sustainability-Linked Loan which underscores our commitment to driving positive environmental outcomes through our investments,” Paul Salter, managing director at Salter Brothers, said.
“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,” Mei McNamara, ESG manager at Salter Brothers noted.
“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.”
Commonwealth Bank of Australia (CBA) played a dual role in this transaction, acting as both the sole sustainability coordinator and lender.
This Sustainability-Linked Loan aligns with CBA's dedication to assisting Australian businesses in realizing their environmental, social, and governance (ESG) objectives.
CBA has a proven track record in supporting sustainable finance within the hospitality sector, having previously facilitated similar transactions for notable players like Crystalbrook Collection and Howard Smith Wharves (now known as Artemus).
Jonathan Jackson, 27th January 2024
