21-year A$1.8b green sustainability-linked loan tied to IS Operations rating
In March 2022, Reliance Rail secured a $1.8b green sustainability-linked loan tied to an IS Operations rating.
Reliance Rail is a public-private partnership (PPP) with the NSW Government, established in 2006 to deliver the Waratah train fleet and 30 years of maintenance. There were no contractual requirements to improve sustainability or obtain an IS rating.
Green Sustainability-Linked Loan (GSLL)
Reliance Rail, under the leadership of its CFO Louise Iida, secured the first sustainability-linked instrument for an Australian PPP and one of the first loans in Australia to be both green-certified and sustainability-linked. BNP Paribas, Commonwealth Bank of Australia (CBA) and National Australia Bank acted as joint sustainability coordinators. Sustainability performance targets (SPTs) over an initial 10-year period including IS Operations rating score is the most significant metric. Other metrics included the energy intensity of the trains and maintenance facility, solar PV generation and operational water intensity. Potential margin savings are available for 10 years, with a significant incentive to improve rating scores as early as possible.
Read the detailed case study here
