HSF helps secure $600m sustainability-linked loan

The loan is the first of its kind to be issued by an Australian energy company in the Asia-Pacific region

HSF helps secure $600m sustainability-linked loan

Herbert Smith Freehills (HSF) has helped secure a pioneering loan for an Australian company.

The Anglo-Australian giant helped AGL Energy on its $600m syndicated sustainability-linked loan, which it said is the first of its kind issued by an Australian energy company in the Asia-Pacific region.

The deal has also been recognised by FinanceAsia’s Achievement Awards in 2019 in Australia and New Zealand as the “Most Innovative Deal.”

The loan will be more favourable to AGL as it improves efficiency and its emissions performance. It comes at a time when there is greater interest from corporates and lenders in sustainable and green financing products, HSF said.

The loan is made possible with the support of Australia New Zealand Banking Corporation and BNP Paribas, which were the loan’s sustainability coordinators.

The HSF team was headed by partner John Angus, who said that the loan shows AGL’s commitment to managing the risks associated with the transition of the energy sector away from high carbon emissions placed on AGL’s lenders, investors, and the economy.

Angus weas supported by senior associate Peter Ip from the finance team and partner Peter Davis from the corporate energy team.