King & Wood Mallesons (KWM) has advised the Clean Energy Finance Corporation (CEFC) in its innovative debt finance package of $490 million to EnergyCo NSW.
This financing will underpin expenditure related to transmission infrastructure required to unlock capacity in the Central West Orana Renewable Energy Zone. The CEFC finance will be used to purchase land for the planned rollout as well as biodiversity offset credits used to offset the impact to biodiversity values in the relevant area.
The investment, which draws from the federal government’s Rewiring The Nation (RTN) Fund, marks the single largest transaction in the CEFC’s history. EnergyCo NSW estimates that this agreement will provide NSW electricity consumers with $240 million in nominal benefits by putting downward pressure on project costs over the loan’s 20-year term.
KWM acted as counsel for the CEFC and worked closely with EnergyCo NSW to deliver the commitment, on concessional terms via an innovative financing structure.
The KWM team was led by Partner, Claire Rogers (Head of ESG).
Commenting on the transaction, Claire Rogers said:
“It was a pleasure to assist the Clean Energy Finance Corporation on this important financing that supports NSW electricity consumers and fast tracks NSW’s grid transformation.”
KWM looks forward to continuing its involvement in providing bespoke solutions and support to various stakeholders in Australia’s everchanging energy transition.
