Macquarie Group has announced a £2 billion (AU$3.54b) loan facility, with a quarter – AU$885 million – dedicated to support renewable energy and other green projects.
Macquarie said the £2 billion facility would include £500 million in green tranches, the first of which would be a £250 million (AU$443m) revolving three-year tranche investing in renewable energy projects.
A second five-year term tranche of the same amount would “in the future” invest in other green projects, such as energy efficiency, waste management, green buildings and clean transportation.
Macquarie says it is the first Australian company and first financial institution globally to issue a green loan under the Asia Pacific Loan Market Association’s Green Loan Principles, which were published in March 2018. Similar to the Green Bond Principles, the loan principles have four pillar to ensure projects have clear environmental benefits and are adopting best practice – use of proceeds, project evaluation and selection, management of proceeds, and reporting.
A statement from Macquarie said its loan issue demonstrated “continued leadership in green finance”, with £15 billion (AU$26.6b) invested in green infrastructure since 2010, enabling 20 gigawatts of renewable energy with a further 7GW in the pipeline.
“This transaction further demonstrates the leading global role Macquarie is playing in the growth of green finance and the development of new renewables capacity,” Macquarie chief financial officer Alex Harvey said.
“The future utilisation of our Green Investment Group’s [GIG, formerly known as the UK’s Green Investment Bank] market-leading green impact assessment approach is another example of the value delivered by our acquisition of GIG in 2017.”
Macquarie said the loan saw strong demand from global financial institutions, particularly in Asia. The Hongkong and Shanghai Banking Corporation Limited, HSBC and ING acted as green structuring advisors on the transaction. HSBC coordinated the syndication of the facility as a joint bookrunner with ING and Bank of China Ltd.