Allens has advised on the refinancing of Sydney Airport Finance Company Pty Limited’s (Sydney Airport) (ASX: SYD) syndicated bank debt facilities, the first syndicated and largest sustainability linked loan ever in the Australian market.
The A$1.4 billion loan is sustainability linked, incentivising Environment, Social and Governance (ESG) outcomes by Sydney Airport group members by reference to an independently assessed sustainability benchmark.
Allens acted for the syndicate of major domestic and international lenders, including the joint Sustainability Co-ordinators and Bookrunners, Australia and New Zealand Banking Group Limited and BNP Paribas.
‘We are thrilled to act on this first of its kind transaction for Sydney Airport and the lenders.’ said lead Partner Renee Boundy.
‘As a member of the APLMA’s Green and Sustainable Loan committee, and a big fan of the product, it’s encouraging to see real commitment from such a large number of lenders to deliver a product that recognises and rewards the ESG improvements and establishes a transparent regime by which lenders – and the market – can benchmark ESG performance,’ she said.
The transaction builds upon Allens’ work to develop principles for green and sustainable loans and similar products like social impact bonds in the Australian and Asian loan markets.