Distribution network operator Endeavour Energy has secured A$2.065 billion in financing under new Sustainability-Linked Loans (SLLs) to help propel its net zero transition.
ANZ and The Commonwealth Bank of Australia acted as joint Sustainability Coordinators, with ANZ, The Commonwealth Bank of Australia and MUFG serving as Mandated Lead Arrangers and Bookrunners among a syndicate of 17 banks, while Acton Advisory acted as Endeavour Energy’s financial advisor.
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Endeavour Energy chief financial officer Francoise Merit said, “As one of the fastest growing and most efficient electricity distribution network service providers in Australia, Endeavour Energy continues to lead the way in responsible, future-focused infrastructure investment, delivering real impact with tangible outcomes in emissions reduction, biodiversity, health and well-being and circularity.
“This latest transaction brings Endeavour Energy’s total sustainability-linked financing to over $3 billion, representing ~40% of our debt, and in part refinances our inaugural landmark $920 million SLL which closed in 2022, demonstrating the extent of our strengthened commitment and ensuring that sustainability continues to sit at the heart of our operations as we work towards our goal of decarbonising the grid by 2035,” she added.
Endeavour Energy has updated and extended key performance indicators (KPIs) focused on greenhouse gas emissions reduction, landfill waste diversion and net habitat gain, while introducing a new Scope 3 greenhouse gas emissions target.
The extended KPIs include:
- Absolute Scope 1 and 2 greenhouse gas emissions reduction (excluding line losses)
- Absolute waste diverted from landfill (operational)
- Net habitat gain, calculated as the amount of habitat enhanced or restored plus habitat protected (on and offsite), less the habitat removed during a selected time period.
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Francoise said, “This new target was the toughest to incorporate, but given Scope 3 emissions form a highly material component of Endeavour Energy’s total emissions profile, it was important to embrace and will be a critical step in supporting our strategic ambition to decarbonise the grid by 2035.”
Endeavour Energy remains the only known electricity distribution network service provider in Australia to access sustainability-linked financing, underscoring its leadership in sustainable energy infrastructure.
