Russell McVeagh assists TWG on $70m sustainability-linked financing

Loan financially incentivises the retail giant if it meets sustainability targets set in the next four years

Russell McVeagh assists TWG on $70m sustainability-linked financing

Russell McVeagh has assisted New Zealand retail chain The Warehouse Group (TWG) in securing a $70 million sustainability-linked loan (SLL) with banking giant Westpac NZ.

The two-year extendable funding financially incentivises TWG if it completes its sustainability targets set out over a four-year period, with a higher interest rate on the loan if it falls short of its commitments.

Among the sustainability performance goals the retailer have set out are the increased use of sustainable packaging, reduction of carbon emissions, and ethical sourcing of textiles, wood, and paper, along with gender diversity targets.

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Partner John Powell led the Russell McVeagh team, which was supported by solicitor Millie Bidwill and law clerk Stella Simpson.

The deal further demonstrates the firm’s role in leading the development of New Zealand’s sustainable finance market. Recently, it has advised energy retailer Genesis Energy in establishing its sustainable finance framework and securing $100 million sustainability-linked funding.

Last August, the firm also assisted retirement village Summerset in the completion of a loan facility refinance valued at around $1.2 billion, which included a record-setting $700 million SLL.

It has also guided ANZ New Zealand with Kathmandu Holdings Limited’s A$300 million (about $311 million) debt facility refinancing, with an SLL worth A$100 million (about $104 million) and KiwiRail’s acquisition of low-emissions locomotives from Stadler Rail Valencia for $403 million.

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