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Herbert Smith Freehills has advised AGL Energy Limited on its A$600 million syndicated sustainability-linked loan that demonstrates AGL’s commitment to its long-term sustainability objectives. 

AGL’s syndicated sustainability-linked loan is the first of its kind issued by an Australian energy company in the Asia-Pacific region. The deal was awarded ‘Most Innovative Deal’ at FinanceAsia’s Achievement Awards in 2019 in Australia and New Zealand.

With the support of Australia and New Zealand Banking Corporation and BNP Paribas as sustainability co-ordinators and Herbert Smith Freehills, AGL has been able to issue a product that incentives efficiency and gradual improvement in AGL’s emissions performance and comes at a time where there is greater interest from corporates and lenders in sustainable and green financing products. 

The Herbert Smith Freehills team was led by partner John Angus and supported by senior associate Peter Ip in our finance team and Peter Davis, partner in our corporate energy team.

Mr Angus said, “We are proud to have supported AGL in this landmark transaction. This was an innovative deal and the great result showcases AGL’s commitment to managing the risks associated with the transition of the energy sector away from high carbon emissions which are placed on AGL’s lenders, investors and the economy.”

“We look forward to continuing to work with AGL on achieving its long-term business objectives.”