Clifford Chance, Allens advise on landmark sustainability-linked loan

The $500m loan is the first of its kind in the Australian gold mining industry

Clifford Chance, Allens advise on landmark sustainability-linked loan

Clifford Chance and Allens have advised on Gold Fields Limited’s landmark $500m sustainability-linked loan.

According to Clifford Chance, this loan is the first of its kind in the Australian gold mining industry. The firm guided Commonwealth Bank of Australia (CBA) as the sole sustainability coordinator, mandated lead arranger and bookrunner, and facility agent. Meanwhile, Allens assisted Gold Fields.

The transaction involved a $500m five-year syndicated credit facility agreement with a $100m accordion option. As per Clifford Chance, through the credit facility Gold Fields can “receive a margin adjustment based on its performance against ESG-related goals such as increasing female representation in its workforce, reducing carbon emissions and using more recycled water.”  

“With industries and financiers working closely together to achieve more sustainable outcomes, we anticipate that this landmark transaction will pave the way for future sustainable finance transactions in this sector,” shared Clifford Chance partner Mark Gillgren.

Allens partner Ben Farnsworth added that the refinancing “reflects increasing market demand for sustainability-linked financing from both borrowers and lenders seeking to deliver on key ESG objectives.”

“We are seeing increasing demand for these products and expect ESG considerations to be embedded into more lending transactions as Australia works towards its net zero goals,” he said.

 Gillgren headed up the Clifford Chance team with support from senior associate Nick Henneberry and associate Anurag Chadha (Sydney), as well as Belinda Brady and Siew Mei Yong in Perth.  

Farnsworth led the banking and finance team from Allens, which included senior associates Dean Rose and Tania Joppich, associate Michael Zeng, and lawyer Megan Lee.

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