Aberdeen Standard Investments’ Canberra Metro investment has become the first public private partnership project in Australia to use internationally certified green financing.
This follows the successful negotiation of a AU$280 million refinancing debt facility for Canberra’s 12 kilometre integrated electric light rail system with a syndicate of local and international banks.
Canberra Metro is owned by a consortium which includes Aberdeen Standard Investments, Pacific Partnerships (a member of the CIMIC Group), John Holland and Mitsubishi Corporation.
The green loan was structured in accordance with the Green Loan Principles 2020 issued by the Asia Pacific Loan Market Association and achieved certification under the Climate Bond Initiative under the Low Carbon Transport Criteria. The project aligns with the criteria through its commitment to offer low-carbon, emissions-free sustainable transport to Canberrans.
All of the electricity used to power the Canberra light rail project’s vehicles, maintenance and administration buildings is renewable energy, and 93% of the project’s vehicle components are recycled, with an additional 5.6% recovered and diverted from landfill1.
Bill Haughey, Head of Infrastructure Investment and Asset Management – Australia and New Zealand at Aberdeen Standard Investments said, “Canberra’s light rail network is a strong green infrastructure project which makes a direct contribution to Canberra’s goal of achieving net zero emissions by 2045. We know climate change is a central concern for investors, and we understand how complex it is to manage its risks. We are proud to play our part in managing those risks by pioneering the use of green financing in Australia through Canberra Metro.”
Lachlan Marks, Chief Executive of Canberra Metro said, “As CEO of Canberra Metro, I’m immensely proud to have secured this source of funding for our climate resilient project that ultimately makes the business more effective, secure and durable. In the face of the climate shifts to come, strengthening resilience factors across all facets of investment decision-making and business operations will help improve lives and livelihoods for generations to come.”
In obtaining the green loan, Canberra Metro was assisted by its Financial Advisor and Green Structuring Advisor MUFG and its banks including ANZ, CBA, ING, Mizuho, SMBC and NAB.
1 Canberra Metro, Sustainability, at: https://www.canberra-metro.com.au/about/sustainability
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*as of 30 June 2020
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