In an Australian first, the loan is also linked to developing a Reconciliation Action Plan.
Additional sustainability metrics focus on Greenhouse Gas Emissions reduction, gender diversity and continued leadership in the GRESB Infrastructure Asset Assessment.
Adam Bennett, NSW Land Registry Services CEO, said now was the time for corporate action toward sustainability and community goals.
“We are the trusted custodians of NSW land and titling information, and trust is built on doing what’s right both for our customers and for the social and environmental fabric that strengthens NSW and Australia.
“Covid-19 has made it clear that our staff, our communities, our homes, neighbourhoods and surrounding environment are what matters most at the end of the day.
“Given the link between a land registry and Country we are proud to pioneer the inclusion of a Reconciliation Action Plan as one of the key sustainability metrics,” he said.
Reconciliation Australia’s Reconciliation Action Plan (RAP) program contributes to advancing reconciliation by supporting organisations to develop respectful relationships and create meaningful opportunities with Aboriginal and Torres Strait Islander peoples through commitments to ongoing, measurable actions.
Of the 1,100 organisations with an active RAP, across a range of industries, 21 have an Elevate RAP and are considered national leaders in the reconciliation movement.
Reconciliation Australia’s Chief Executive Officer Karen Mundine said, “We look forward to welcoming NSW Land Registry Services to the RAP community and encourage them to take brave steps on their reconciliation journey. Getting these first steps right will ensure the sustainability of future RAPs and reconciliation initiatives, and contribute to meaningful progress towards Australia’s reconciled future.”
Commonwealth Bank Group Executive for Institutional Banking and Markets, Andrew Hinchliff, said providing clients with sustainable finance solutions was a top priority for the bank.
“We work closely with our customers to help them translate the unique ESG attributes of their businesses into ambitious targets that advance Australia’s transition to a more sustainable future. NSW Land Registry Services are to be commended for their commitment to Indigenous Reconciliation, employee diversity and emissions reduction, and we’re very proud to be able to play a part in helping them pursue these ambitions.”
Westpac Head of Sustainable Finance Eliza Mathews: “Westpac is committed to helping customers improve their sustainability performance and is proud to have supported the NSW Land Registry Services with this innovative SLL.”
Embarking on a sustainability linked loan process under the Loan Market Association’s Sustainability Linked Loan Principles (May 2021), embeds NSW LRS’ environmental, social and governance ambitions with long term financial outcomes.
To incentivise sustainable practices, the loan incorporates an interest rate adjustment matrix based on agreed targets.
The Sustainability Linked Loan was part of a broader A$1.9 billion refinancing of NSW LRS’ existing debt facilities, funded by a consortium of lenders.
Barrenjoey acted as Financial Advisor to NSW LRS for the refinancing transaction.
Allens Linklaters acted as Legal Advisor to NSW LRS for the refinancing transaction.
The Commonwealth Bank and Westpac Banking Corporation were Joint Sustainability Coordinators for the Sustainability Linked Loan.