Macquarie issuing GBP-2bn loan with green tranches

Author: Images Money. License: Creative Commons, Attribution 2.0 Generic.

Australia’s Macquarie Group Ltd (ASX:MQG) said today it is issuing a GBP-2-billion (USD 2.67bn/EUR 2.27bn) loan facility that includes GBP 500 million in green tranches.

The Aussie financial group explained in a statement that it plans to use the proceeds from the two GBP-250-million tranches to back eligible renewable energy projects at first, and energy efficiency, waste management, green buildings and clean transportation projects in the future.

Macquarie said that the loan saw solid demand from global financial institutions, with notable interest in Asia.

The table below gives more details about the loan facility.

Tranche	Tenor	Structure	Use of Proceeds	Volume (in GBP)
A1	3 year	Revolving	Green	250m
A2	3 year	Revolving	General corporate	380m
B1	5 year	Term	Green	250m
B2	5 year	Term	General corporate	1.12bn
Total				2bn

The facility will adopt the four pillars identified in the Green Loan Principles published by the Asia Pacific Loan Market Association (APLMA) in March 2018. Macquarie noted that it is the first financial institution globally, and also the first Australian company, to issue a green loan under those principles.

The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch (HSBC) and ING Bank NV (ING) served as green structuring advisors on the transaction.

(GBP 1.0 = USD 1.336/EUR 1.137)

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