Russell McVeagh assists on record sustainability-linked loan transaction

This is the firm's second SLL of significance this year

Russell McVeagh assists on record sustainability-linked loan transaction

Russell McVeagh has assisted retirement village Summerset to complete a loan facility refinance at around $1.2 billion with the inclusion of a $700 million sustainability-linked loan (SLL), effective October 1 onwards.

Banking and finance partner John Powell led the Russell McVeagh team on the refinance with the help of partner Tom Hunt and solicitor Ben Regan.

The loan is one of the largest SLLs in the New Zealand, and the second SLL of significance that the firm has acted on this year.

An SLL provides borrowers with a better price if the project meets certain sustainable performance metrics.

In this case, Summerset agreed to divert construction waste from landfills, roll out memory care suites for dementia-friendly accreditation, and reduce greenhouse gas emissions to align with other sustainable initiatives.

"We have appreciated the opportunity to work alongside Summerset and to assist their team achieve this market-leading SLL refinance as part of their commitment to sustainability,” said Powell. “It marks another important step in sustainable lending in the New Zealand market and our team is proud to continue to play a role in the growth of this type of lending.”
The firm said that the increased capacity the refinance offers also provides headroom to fund Summerset's growth in Australia, in line with its previously signalled plans.

Prior to this transaction, Russell McVeagh had assisted ANZ New Zealand with Kathmandu Holdings Limited’s A$300 million debt facility refinancing with an SLL worth A$100 million ¬– then the largest syndicated SLL in the New Zealand market.

Recent articles & video

Wellington District Court judge named principal Youth Court judge

Simpson Grierson elevates public law specialist to senior associate

Working remotely has become a top priority for lawyers: ABA report

Ashurst announces board appointments

LexisNexis NZ welcomes new GM with a vision for customer-centric focus and commitment

Henderson Reeves promotes three to director

Most Read Articles

LexisNexis NZ welcomes new GM with a vision for customer-centric focus and commitment

Guardians of NZ Superannuation promotes Russell McVeagh alum to GC

AJ Park promotes patent attorney

Is the 4-day workweek an inevitable part of our future?