Macquarie bolsters green investments

Macquarie Group issued a new loan facility, including $880 million to be specifically directed into green projects.

Totalling more than $3.5 billion, Macquarie said its new facility demonstrates its ongoing commitment to green energy and technology as a fund manager, adviser, financier and investor.

In issuing the facility, Macquarie said it becomes the first institution in the world and first Australian company to issue a green loan under the new Asia Pacific Loan Market Association's Green Loan Principles. It seeks to establish best practice in terms of the use of proceeds; project evaluation and selection; management of proceeds; and reporting.

To be issued in two $440 million tranches, the green loans will fund eligible projects that provide clear green benefits. In the first instance, the tranches will support renewable energy projects, while the second tranche will go toward energy efficiency, waste management, green buildings, and clean transport.

Macquarie said global demand for the new facility was strong, particularly in Asia. HSBC and ING co-ordinated on the transaction.

Macquarie acquired the UK's Green Investment Bank (now Green Investment Group or GIG) in 2017, which has developed a proprietary Green Impact Assessment service determining the green impact of assets, a key feature of the development of green bonds, loans and related products.

Macquarie's chief financial officer Alex Harvey said: "This transaction further demonstrates the leading global role Macquarie is playing in the growth of green finance and the development of new renewables capacity."

"The future utilisation of our Green Investment Group's market-leading Green Impact Assessment approach is another example of the value delivered by our acquisition of GIG in 2017."

Read more: Macquarie GroupGreen Investment GroupAsia Pacific Loan Market AssociationAlex HarveyGreen Investment BankESGresponsible investment
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