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The SLB was issued into the United States’ Rule 144A / Reg S market which delivered strong liquidity and volume for Goodman despite a volatile market backdrop – attributed, in part, to the highly ambitious key performance indicator (KPI) set by Goodman as part of the transaction.
The KPI of the SLB is designed to reduce Goodman’s Absolute Greenhouse Gas Scope 1 and 2 Emissions in line with the Paris Climate Agreement, as verified by Science Based Targets initiative. This KPI reflects Goodman’s focus on sustainability, and failure to meet this targets will mean Goodman has to pay a penalty to investors1.
Andrew Duncan, Head of Debt Capital Markets, Australia at HSBC said the success of the transaction opened up opportunity for other Australian businesses seeking sustainable finance solutions.
“The strong interest in the transaction among global investors demonstrates not only Goodman’s decarbonisation efforts, but also the wide array of sustainable finance options available for Australian companies.
“We expect SLBs and other sustainability linked financing to become more popular as ESG becomes an increasingly significant element of investment decisions.”
HSBC BANK AUSTRALIA
In Australia, the HSBC Group offers an extensive range of financial services through a network of 45 branches and offices. These services include retail and commercial banking, trade finance, treasury and financial markets, payments and cash management and securities custody. Principal HSBC Group members operating in Australia include HSBC Bank Australia Limited (ABN 48 006 434 162 AFSL/Australian Credit Licence 232595) and The Hongkong and Shanghai Banking Corporation Limited (ABN 65 117 925 970 and AFSL 301737).