White & Case advised the syndicate of lenders to Reliance Rail on the AUD1.8 billion (USD1.3 billion), 21-year green sustainability-linked loan (GSLL) to fully refinance its existing debt facilities. The White & Case team in Sydney that advised on the transaction was led by partners Joel Rennie and Cameron Watson, with support from associates Danielle Ingham, Chris Wallace and Shika Hegde. The syndicate of lenders comprises BNP Paribas, Commonwealth Bank of Australia, DZ Bank, Industrial and Commercial Bank of China, Kookmin Bank, Mizuho Bank, National Australia Bank, Natixis, Nippon Life, Norinchukin, Sumitomo Mitsui Trust Bank and Westpac.
“This is a novel GSLL as it is a green loan as well as a sustainability-linked loan,” said Watson, who co-led the team. “In addition, any margin savings on the loan are to be used exclusively to fund sustainability initiatives such as carbon and emissions reduction projects.”
Reliance Rail is a public-private partnership with the New South Wales Government established to design, manufacture and maintain 78 Waratah Trains, which make up approximately a third of Sydney’s suburban passenger fleet, and the Auburn Maintenance Centre, which maintains over 60% of Sydney Trains’ passenger fleet.