Investa’s core prime office fund has become the first Australian fund to secure a green loan to help refinance its debt.

Investa Commercial Property Fund (ICPF) said it has secured the A$170m (€107m) loan and has achieved Australia’s first verification of a green loan from Climate Bonds Initiative (CBI).

ICPF intends to use the loan to refinance an existing, revolving debt facility and will be fully allocated against the entire $5.1bn portfolio.

Jason Leong, the fund manager ICPF said: “We are very proud to be the first Australian fund to secure a green loan.

“We’ve worked hard to ensure the whole portfolio meets the rigorous standards of the Climate Bonds Initiative, which optimises the application of the funds.”

Leong said this new green loan links the funds debt funding with an emissions intensity standard for its portfolio, thereby “creating financial opportunity via strong environmental performance”.

“We are certainly open to entering into more green loans or green financial instruments in the future,” Leong said.

Nina James, a general manager in charge if corporate sustainability at Investa, said: “In 2016, Investa set an ambitious carbon reduction target of net zero emissions by 2040, leading the industry and ensuring Investa managed assets are continually on an aggressive pathway to net zero emissions.

“ICPF’s new green loan is another example of how Investa is meeting the increasing demands of investors who prioritise action on climate change by innovating the way we structure our finance, to further reduce our impacts.”

Rob Fowler the head of certification for climate bonds initiative said: “This initiative keeps Investa at the forefront of green finance development in Australia.

“From multiple certified green bonds to this loan project, they are active in pursuing both innovation in green investment and international best practice in Australia’s property sector.”