At QuadReal, our financing strategy ensures there is liquidity to meet our present and future investment needs, with a focus on optimizing our credit capacity and cost of capital. We utilize both unsecured and secured financing to manage and diversify our funding sources.
BCI QuadReal Realty (BQR) is the main financing entity, comprised of high-quality Canadian residential, industrial, office and retail assets with an issuer and senior notes rating of AA (low) by DBRS Morningstar (DBRS). QuadReal, on behalf of BQR, issues bonds including green bonds under our Green Bond Framework. BQR also has an active $2.5 billion commercial paper program, rated R-1 (low) by DBRS and various unsecured credit facilities including a sustainability-linked loan (SLL) facility, which support ongoing liquidity requirements.
In addition, QuadReal utilizes various asset-level financing structures including land, construction and term facilities, and CMHC mortgages for some of our Canadian residential properties.
Sustainable Financing Programs
Green Bond Framework
QuadReal’s Green Bond Framework paves the way for investors to be a part of our sustainability focus. Under this framework, we allocate 100% of net green bond proceeds to eligible green project categories, which include investments in green buildings, renewable energy, clean transportation, and other sustainable initiatives.
Sustainability-Linked Loan (SLL)
In March 2022, QuadReal closed the largest SLL facility in the Canadian real estate market by incorporating key metrics in the extension of BQR’s existing $2.5 billion unsecured credit facility.
The SLL facility incorporates two sustainability-linked performance targets related to reductions in greenhouse gas intensity and energy usage that includes incentive pricing which reduce or increase QuadReal’s borrowing costs if the targets are met or missed, respectively.
These KPIs include a target 2% annual reduction in Greenhouse Gas Emissions Intensity of Office and Enclosed Retail Assets and a target 2% reduction of Normalized Energy Use Intensity of Multifamily Residential Assets.
Tamara Lawson, Chief Financial Officer
“I am very proud of the diverse funding sources we have established to support QuadReal’s investments and its overall objective to deliver strong investment returns for its clients. We will continue to build and evolve our financing platform to meet the needs of the business.”