Eureka brings social loan discipline to its rental business

Eureka Group has tightened the alignment between its funding and its mission, converting all $180 million of its loan facilities with Westpac and NAB into Social Loans under a new Sustainability Terms Deed Poll. 

Under Eureka’s Sustainable Finance Framework, loan proceeds will be allocated on a portfolio basis to two types of Eligible Projects: 

• Affordable housing for residents, and 
• Green upgrades, including rooftop solar PV, battery storage and other energy-efficiency measures aimed at reducing both emissions and residents’ energy bills. 

Eureka has secured an independent Second Party Opinion confirming alignment with the 2025 Green Loan Principles and Social Loan Principles. The group will publish annual allocation and impact reporting, tracking indicators such as rent-to-income ratios, the number of eligible residents, installed capacity and estimated emissions avoided. 

Part of a broader shift in sector finance 

The conversion does not change pricing, covenants or security arrangements. 

Eureka Managing Director and CEO Simon Owen said the move hardwires the organisation’s purpose into its balance sheet. 

“Converting our Westpac and NAB facilities into Social Loans directly links our funding to the delivery of affordable, secure housing and energy upgrades across our villages, reinforcing our resident-first philosophy,” he said. 

Westpac Institutional Bank CEO Nell Hutton said the bank was “proud to support Eureka” in channelling capital toward affordable housing outcomes. 

The designation splits $180 million evenly between Westpac and NAB, with proceeds to be fully allocated within 24 months and reported annually. 

It follows a broader trend of sustainability-aligned financing in the seniors housing sector, including Levande’s $1.5 billion sustainability-linked loan last year, which has already delivered interest savings of around $400,000 after meeting its performance targets.