Herbert Smith Freehills has advised ISPT Pty Ltd (ISPT) on the restructure of A$2.8 billion in bank facilities to sustainability linked loan facilities for ISPT’s flagship fund, the ISPT Core Fund. The restructure represents the largest sustainability linked loan facility announced in Australia to date.
The restructure of ISPT Core Fund’s two facility agreements involved five joint sustainability coordinators (ANZ, CBA, HSBC, NAB, and Westpac) and The Bank of Nova Scotia as an additional lender and linked four of ISPT’s environmental, social and governance (ESG) targets – emissions, water usage, labour certification and waste – to the interest rate margin payable on its debt.
The Herbert Smith Freehills team was led by Partner Andrew Booth, Executive Counsel Amy Repse and Solicitor Andrew Julian.
Mr Booth said, ‘The restructure of ISPT’s A$2.8 billion bank facilities to incorporate sustainability linked loans is a fantastic outcome for all parties involved and is an example of ISPT’s leadership and innovation in the ESG space.
‘The transaction demonstrates the increasing appetite for sustainability linked loans in the Australian market and the benefits available to borrowers and lenders alike.’
Ms Repse said, ‘We are pleased to have advised ISPT on Australia’s largest sustainability linked loan facility announced to date. The transaction shows that borrowers and lenders are continuing to work together to create tailored and unique sustainable finance solutions.'
This deal is another example of Herbert Smith Freehills’ market-leading work in sustainable finance, including advising AGL Energy Limited on its A$600m syndicated sustainability linked loan facility and advising Treasury Corporation of Victoria on its landmark A$300m green bond issue.