The Port of Brisbane, Australia’s largest and most diverse capital city port, has agreed to terms on a $500 million sustainability-linked loan.
As informed, the loan will be financed by a syndicate of 10 banks. The sustainability linked loan was negotiated as part of larger $850 million syndicated bank loan transaction in November 2022 and will take effect from June 2023.
The loan will be executed under the Port’s Sustainability Financing Framework and will be linked to KPIs across three key areas, including emissions reduction, biodiversity, and mental health first aid.
Specifically, the port plans to reduce scope 1 and 2 emissions periodically to below 8,702 tons of CO2 emissions by FY26 (from an FY22 baseline of 12,289 tons of CO2 emissions).
Port of Brisbane Pty Ltd’s (PBPL) Chief Executive, Neil Stephens , said the deal would support the port’s ongoing investments and efforts to work on decarbonisation.
The loan is also split across two terms, $240 million over a four-year term and $260 million over a six-year term. This will allow PBPL to decrease its funding costs should it meet the targets.
“Sustainability at the Port of Brisbane is a whole-of-business strategy. Everything we do incorporates the principles sustainability with the long-term future of the business and its community at its core,” Stephens commented.
“Tying an important part of our financing structure to sustainability sends a clear signal to investors and the community that our commitment to the global transition to a more sustainable future is deep and unwavering.”
Brisbane Port has recently marked a year in service of its new Brisbane International Cruise Terminal. The $177 million project has helped turbo-charge the restart of cruising in Queensland.