CenterPoint Properties Raises $250 Million Through Green Bonds

The proceeds will be utilized to finance energy-efficient projects


CenterPoint Properties, a U.S.-based industrial real-estate company, announced the closing of its inaugural green bond issuance. The company raised $250 million through the private placement of the green bonds.

Green bonds are financial instruments specifically earmarked to raise money for climate and environmental projects.

In its press statement, the company said that the proceeds from the green bonds would be utilized to finance projects such as green building constructions. It would also use the proceeds for the development and operational maintenance of green buildings and to acquire new, refurbished, or existing buildings that receive LEED®, ENERGY STAR®, and other industry-leading certifications. Besides that, the green bond’s proceeds will be utilized to fund energy-efficient projects within the company’s current portfolio, including operational enhancement and other sustainable maintenance.

“CenterPoint’s executive leadership team believes this inaugural green bond issuance will help us in our efforts to make a positive impact on the environment,” said Chris Papa, Chief Finance Officer of CenterPoint Properties.

According to CenterPoint, the company expanded its portfolio of properties that acquired Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. It also utilizes an online tool to observe and reduce energy consumption, water usage, and carbon footprints of its properties.

“CenterPoint strives to find smart logistics solutions to cut carbon emissions, develop energy-efficient buildings that save resources and ensure proper disposal of hazardous materials to make tenants, communities and local environment safer,” said the press statement.

In August 2020, Visa, a U.S.-based multinational digital financial service provider, issued its inaugural green bond offering, totaling $500 million (~₹37.38 billion). The issued green bond offering had a semi-annual coupon rate of 0.75% with a maturity period of seven years.

Earlier this year, Canada-based renewable energy investor, Brookfield Renewable, announced that it would issue green bonds to the tune of CDN$ 425 million (~$321 million). These medium-term notes would bear an interest of 3.3% per year, due on August 13, 2050.

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

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