RELIANCE RAIL REFINANCED WITH GREEN SUSTAINABILITY LINKED LOAN

$1.8 billion, 21-year loan to improve sustainability of infrastructure and operations

Amber Infrastructure Group (‘Amber’), the specialist international investment manager, confirms its managed investment in Reliance Rail has reached financial close on a new A$1.8 billion Green Sustainability-Linked Loan (‘GSLL’). The 21-year loan refinances Reliance Rail’s existing bank debt facilities for the remainder of the project.

Reliance Rail’s 78 Waratah trains account for roughly a third of Sydney’s suburban passenger fleet and provide almost half of all passenger journeys in the city. Amber-advised International Public Partnerships Limited (‘INPP’), a London listed investment company, has been a substantial investor in Reliance Rail since its inception over 15 years ago.

The GSLL is one of the first in Asia Pacific to be certified as a ‘Green Loan’ by the Climate Bonds Initiative under its Low Carbon Transport criteria, as well as a Sustainability-Linked Loan.

The GSLL supports further electrifying Sydney’s transport infrastructure with reduced debt margins if ambitious Sustainability Performance Targets (‘SPTs’) are met. Margin savings are to be used exclusively to fund sustainability improvements, rather than reduce net funding costs.

The SPTs align to four metrics, with an Infrastructure Sustainability Council Operations Rating score the cornerstone target. The other three metrics relate to the energy intensity of the Auburn Maintenance Centre (‘AMC’) and Waratah Trains, solar PV generation at the AMC, and operational water consumption. The GSLL is structured to provide SPT-linked incentives over an initial 10-year period, with scope to review and extend.

Amber’s Australian team currently manages A$7bn of infrastructure assets across transport, healthcare, public, energy, and digital sectors. Managed investments include Gold Coast Light Rail, the Royal Children’s Hospital, a portfolio of schools in NSW and Victoria, and a majority stake in leading Australian data centre platform, iseek.

Amber’s Head of Asia-Pacific, Vaughan Wallace, said: “The refinancing of Reliance Rail reflects our active approach to managing essential infrastructure investments, leveraging our strong ESG credentials to create value. This Green Sustainability Linked Loan is an industry leader, setting ambitious sustainability targets across Reliance Rail’s existing infrastructure assets and operations. It will incentivise increased use of electrified public transport, ultimately reducing vehicle pollution and traffic congestion in Greater Sydney. The 21-year loan term provides stability for the asset for the remainder of the project and aligns with the long-term nature of our global infrastructure investments.”

Reliance Rail CEO Chad Smithies, said, “While Reliance Rail already plays an important role in providing electrified transport infrastructure in New South Wales, the GSLL presents an excellent opportunity for a mature PPP to use its debt portfolio to intensify its role in the State’s transition to a lower carbon future. We have adopted ambitious SPTs with the support of our key stakeholders and continued collaboration will be essential to achieving them. We believe this initiative will pave the way for other mature infrastructure projects to pursue similar transactions.”

The GSLL is being funded by 12 lenders.

RBC Capital Markets acted as financial adviser for the transaction. King & Wood Mallesons (KWM) acted as legal advisers for the borrowers and White & Case represented the syndicate of lenders.

For further information:

Amber Infrastructure Limited

Market Eye

About Amber Infrastructure Group

Amber Infrastructure (‘Amber’) is a specialist international investment manager, focused on investment origination, asset management and fund management.  With approximately €5 billion in funds under management, Amber invests across eight funds and a number of managed accounts.

Amber’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.

Amber is headquartered in London with offices in Europe, North America and Australia and manages over 150 investments. Amber employs over 150 infrastructure professionals globally.