The loan will provide capital to support Opal HealthCare’s existing residential aged care services alongside the development of new care communities in areas such as Carlingford (NSW), Clayfield (QLD) and Croydon (VIC) to help address the growing demand from Australia’s ageing population.
ANZ acted as Sole Sustainability Coordinator and was the largest lender in the transaction.
Social Loans aim to support economic activity which addresses social issues and challenges or achieve positive social outcomes for vulnerable populations.
Apart from aged care, other sectors that could consider social loans include disability services, unemployment services and public hospitals.
ANZ Executive Director, Sustainable Finance, Emily Tonkin said: “We are pleased to work alongside Opal HealthCare for the ultimate benefit of ageing Australians through the emerging social loan market. Increasingly, sustainable finance is an effective tool to help businesses achieve their environmental and social objectives. Opal HealthCare is well placed to take advantage of these types of products.
“This is the first time a social loan has been executed in the aged care sector in Australia and we hope it encourages further capital flows to important essential services within our communities.”
Opal HealthCare CEO, Rachel Argaman, said: “We are delighted to enter into this social loan which will enable Opal HealthCare to continue to provide much needed, high quality residential aged care services in our existing locations and as we grow in communities where demand for care is high.
“What this means is there will be greater choice and opportunity for people who need care and support as they age, underpinned by our commitment to enable people to live with meaning and purpose in our care.”