The University won ‘Sustainability-linked loan of the year – other’ for what was praised by judges as a unique and exciting deal with a broad range of impact areas. It is the second Environmental Finance award for the University, after it won Sustainability Bond of the Year in 2019 for its $250-million dual tranche transaction in 2018.
Macquarie University became one of the first universities in Australia to establish an SLL when the milestone transaction – a refinance of $450 million of bank facilities – was finalised last July. The University was also the second organisation in the country to include biodiversity among its SLL targets.
The loan includes six Key Performance Indicators, which address scope 1 and scope 2 emissions, scope 3 emissions, biodiversity, staff and student education on indigenous cultural safety and the United Nations’ SDGs, gender equality, and widening participation in STEM (science, technology, engineering and mathematics) for underrepresented groups.
The breadth of these KPIs, as well as the unique commitment by the University to reinvest all margin adjustments into supporting equity scholarships, were also commended by award judges. The first two of these scholarships have been offered to students starting this year.
Vice-Chancellor Professor S Bruce Dowton said: “Macquarie University is committed to the continuous improvement of sustainability across its operations, research, curriculum and environment, and our sustainability-linked loan is testament to that.
“We are inspired by, and determined to meet, the loan’s ambitious targets, which complement the University's broader sustainability strategy.
“It is wonderful not only to see the loan recognised for its innovative structure, but also to have the associated equity scholarships come into effect. These are meaningful inroads, which help accelerate our sustainability journey.”
Grant Samuel, Macquarie University’s financial and sustainability advisor for the refinance says, “Grant Samuel was honoured to have advised Macquarie University on the structuring of its inaugural sustainability linked loan.
“This award-winning transaction is testament to the holistic and transparent approach the University is taking to execute its sustainability strategy; it further underscores how sustainability finance can deliver tangible sustainability impacts.”
As part of its loan commitment, the University will provide annual, public reporting on its target progress. Charles Davis, Head of Sustainable Finance and ESG at the Commonwealth Bank of Australia, which acted as sustainability coordinator on the deal, said: “Commonwealth Bank is proud to have worked with Macquarie University in coordinating its award-winning Sustainability-Linked Loan, which sets a global benchmark in regard to impact and transparency for other borrowers to aspire to.”
Read more about the University’s award-winning SLL and its sustainability journey here. View the full SLL framework here.
