King & Wood Mallesons (KWM) has advised Queensland Airport Limited (QAL) on a $300 million raising to fund the Gold Coast Airport redevelopment. Of the overall total raised, $100 million is in the form of a carbon related Sustainability Linked Loan, funded by CBA and Westpac.
QAL will use the funding for the southern terminal expansion, doubling the terminal floor area over the next two years. The interest rate attached to the $100 million of sustainability linked debt will fluctuate depending on whether the airport meets predetermined emissions targets established by the Airports Council International Program. It is the first financing in Australia to be directly linked to a reduction in carbon emissions and the first to utilise the Airport Carbon Accreditation Program for this purpose.
The KWM team advising on the transaction was led by partner, Rebecca Finkelstein. Rebecca was supported by senior associate, Amy Maguire and law graduate, Lucy Forbes.
Commenting on the raising, Rebecca said: "Sustainability Linked Loans enable companies such as QAL, who are conscious of their environmental impact, to take advantage of discounts linked to encouraging a lower carbon economy. We are pleased to have helped them reach this milestone and be one of the few airports in Australia to utilise a sustainable loan."
KWM is the leading Australian law firm in the sustainability and green loan space, having acted on the first Sustainability Linked Loan in the Australian market for Adelaide Airport and the first Syndicated Sustainability Linked Loan in the Australian market for Sydney Airport earlier this year.