Allens has advised the senior financiers and Green Loan coordinators on the refinancing of the Sydney Light Rail PPP project, which comprises the new 12-kilometre CBD and South East Light Rail line and 13-kilometre Inner West Light Rail line.
The project was refinanced with a 12-year green loan, valued at almost $700 million, which de-risks the project by extending the financing term to better align with the PPP concession term.
As part of the refinancing, the project was certified as meeting the Climate Bonds Standard low carbon transportation criteria on the basis that it will help reduce greenhouse gas emissions from alternative modes of transport.
‘We congratulate Transport for NSW, ALTRAC consortium, the financiers and financial adviser Capella Capital on this important milestone,’ said lead Partner Nicholas Adkins.
‘The project has already transformed and revitalised the Sydney CBD. The ESG targets committed to as part of this innovative refinancing will contribute to achieving Sydney’s sustainability goals by facilitating increased public transport use through the heart of the city.’
The transaction adds to the firm’s track record in advising on green loans for major infrastructure projects, including the recent green and sustainable loans for Canberra Metro PPP, New Generation Rolling Stock PPP and several other financings currently underway.