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Australia’s ‘largest sustainability linked loan’ completed
Property fund ISPT had been advised on a restructured bank facility for its flagship fund, in what the advising law firm has called the largest sustainability linked loan facility in Australia to date.
Jerome Doraisamy
Firm: Herbert Smith Freehills (ISPT), Allens (ANZ, CBA, HSBC, NAB and Westpac in their capacity as joint sustainability coordinators; Bank of Nova Scotia as a lender).
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Deal: ISPT Pty Ltd has restructured its a $2.8 billion in bank facilities to sustainability-linked loan facilities for its flagship fund, the ISPT Core Fund.
The restructure, HSF said in a statement, represents the “largest sustainability linked loan facility announced in Australia to date”.
Under the loan, Allens noted, sustainability performance targets will apply to the Fund's use of borrowed capital in alignment with ISPT's ESG strategy.
Value: $2.8 billion.
Area: Finance.
Key players: The HSF team was led by partner Andrew Booth, executive counsel Amy Repse and solicitor Andrew Julian. The Allens team was led by partner Warwick Newell, who was supported by partner Renee Boundy, senior associate Brooke Muggeridge and lawyer Madeleine Tehan.
Deal significance: Speaking about the transaction, Mr Booth said that the restructure of ISPT’s $2.8 billion bank facilities to incorporate sustainability linked loans is a “fantastic outcome for all parties involved and is an example of ISPT’s leadership and innovation in the ESG space”.
“The transaction demonstrates the increasing appetite for sustainability linked loans in the Australian market and the benefits available to borrowers and lenders alike,” he said.
Ms Repse added: “We are pleased to have advised ISPT on Australia’s largest sustainability linked loan facility announced to date. The transaction shows that borrowers and lenders are continuing to work together to create tailored and unique sustainable finance solutions.”
Mr Newell said: "'Sustainability-linked loans are increasingly in demand for Australian funds and borrowers more generally, who are seeking to align their debt arrangements with ESG goals and strategy. We congratulate the lenders and ISPT on this significant step forward for Australia's SLL market."
