The Diplomat
Spanish bank CaixaBank has granted its first “green loan” to a public-private partnership entity in New South Wales (Australia) for the refinancing of Sydney Light Rail, a light rail project that will reduce greenhouse gas emissions.
As reported by the entity, the transaction marks an important milestone for New South Wales, as it is the first time that a PPP entity in the state has obtained a green loan. It is also the first sustainable financing transaction signed by CaixaBank in the Asia-Pacific-Australia region. CaixaBank has been present in Australia since 2018, when it opened its representative office in Sydney, and is the only Spanish bank in the country.
The transaction will enable the refinancing of the $700 million debt of the Sydney Light Rail project, which covers the design, construction and financing of the city’s light rail network, and its operation and maintenance until 2036. This light rail project is estimated to reduce greenhouse gas emissions by some 663,000 tons over a 30-year period.
The project, which is being implemented by a public-private partnership formed by Transport for New South Wales and the ALTRAC consortium, along with partners Acciona, Alstom and Transdev, is now fully operational and represents “a crucial component of Sydney’s public transport system,” as it enables traffic decongestion, improves sustainability indicators by reducing car-generated emissions, creates jobs and supports economic activity, according to the company.
The “green loan” labels are applied to projects that meet certain sustainable management criteria, such as the use of renewable energy, energy efficiency, clean transportation, pollution control and climate change adaptation. The Sydney Light Rail benefits prominently from energy-saving technology that will enable the streetcars to recover more than 99 percent of the energy normally lost during braking. This green loan was certified by the Climate Bonds Standard Board, an independent body that verifies the compliance of loans and bonds with the rigorous Climate Bonds Standard.
