Grant Samuel is delighted to have acted as financial and sustainability advisor to Macquarie University on their recent $450m Sustainability-Linked Loan (SLL). Funds will be used to refinance their existing bank facilities.
An SLL incorporates environmental, social, and governance (ESG) criteria into its terms and conditions. Unlike traditional loans, the interest rate or other financial aspects of an SLL are tied to the borrower’s ability to meet predefined sustainability performance targets.
Grant Samuel supported the university at every stage of the process, covering the refinancing strategy, structuring of the SLL, legal documentation, and commercial negotiations with financiers. This successful transaction further solidifies Grant Samuel’s reputation as a pioneering market leader, adept at devising and executing strong, adaptable, and innovative funding strategies, ultimately aiding our clients achieve their funding objectives .
Funded by Commonwealth Bank (CBA), ANZ, HSBC, and Bank of China, the facility positions Macquarie as one of the first universities in Australia to adopt an SLL, and it is only the second to include biodiversity in its key performance indicator (KPI) targets.
Macquarie University’s SLL includes six KPIs, addressing critical areas such as emissions, biodiversity, indigenous cultural safety education for staff and students, United Nations’ Sustainable Development Goals (SDGs), gender equality, and widening participation in STEM (science, technology, engineering, and mathematics) for underrepresented groups. By achieving these targets, the University stands to generate over $500,000 in savings throughout the loan’s duration, with every dollar dedicated to supporting underprivileged students through scholarships and bursaries.
Having a longstanding relationship with Macquarie University, advising on their capital management and financing strategy since 2010, Grant Samuel looks forward to continuing its support in facilitating not only their financing arrangements but also their commitment to driving positive social and environmental outcomes.