AUSTRALIA: Light rail PPP concessionaire Canberra Metro has refinanced a A$280m debt facility using a green loan with climate bond initiative certification under low carbon transport criteria.
The consortium of John Holland, Pacific Partnerships, Aberdeen Standard Investments and Mitsubishi Corp said this was the first Australian transport PPP to execute a green loan, which recognised the significance of the project’s contribution to sustainability.
Environmental principles were incorporated during design and construction of the 12 km first phase from the city centre to Gungahlin Place which opened in April 2019. Services are operated using 100% renewable electricity.
The loan was issued in accordance with the Asia Pacific Loan Market Association’s green principles, with the project qualifying in the categories of renewable energy, energy efficiency, pollution prevention and control, clean transport, sustainable water and wastewater management and environmentally sustainable management of living natural resources and land use.
Canberra Metro was assisted in the process by financial adviser and green structuring adviser MUFG, green loan co-ordinators ANZ and CBA and mandated lead arranger banks ANZ, CBA, ING, Mizuho, NAB and SMBC.
‘Achieving a green loan accreditation is a fantastic recognition of the environmental credentials of the ACT and the impact 100% renewable electricity has had on stage 1 of light rail’, said ACT Minister for Transport, Chris Steel. ‘The first stage of light rail shows the rest of Australia what is possible in major infrastructure and public transport projects.’
