Allens advises on Australia’s first PPP green loan

Allens has advised the lenders on the refinancing of Canberra Metro’s syndicated facility, Australia’s first public-private partnership (PPP) to have a certified ‘green loan’.

The debt facilities refinance stage 1 of Canberra’s light rail network, which began operations in 2019 and is the largest single infrastructure project ever undertaken by the Australian Capital Territory. MUFG acted as financial adviser.

Allens also acted for the two Green Loan Coordinators, ANZ and the Commonwealth Bank, who worked with Canberra Metro to develop a tailored green loan framework. The Canberra light rail project is integral to supporting the ACT’s carbon reduction goals both in the near and long term future, which is reflected in its green certification.

‘We are delighted to continue working with Canberra Metro and its lenders on the green financing of this landmark infrastructure project,’ said lead Partner Scott McCoy.

‘Having the green loan certification is a fantastic outcome. While this is Australia’s first green loan-certified PPP, we expect there will be many more to come as this area of financing becomes increasingly sought-after in the market.’

The deal builds on Allens’ reputation as a leading adviser on green and sustainability linked loans, which includes the $1.4 billion sustainability linked loan to Sydney Airport, the first syndicated sustainability linked loan in the Australian market, the conversion of Wesfarmers’ existing debt into a $400 million sustainability-linked loan and inaugural green bond issuances for Investa Property Group and QIC Shopping Centre Fund.

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