Sustainable finance

Downer’s approach to sustainability is integrated with our financial decision making, with our Sustainability Linked Loan (SLL) forming one of the key instruments that support our ESG commitments.

SLLs are designed to incentivise borrowers, like Downer, to deliver on commitments to sustainability via aligning a company’s cost of capital with its sustainability performance and to support sustainable economic activity and growth.

Under a SLL, loan pricing is linked to the achievement of specific ESG targets. This mechanism supports Downer’s commitment to further embedding sustainability across our operations and aligning our strategy with our ESG objectives.

Downer first entered the sustainable finance market in 2020 with the establishment of a $1.4 billion syndicated SLL facility – at the time the largest of its kind in Australia. The facility received multiple industry awards, recognising Downer’s leadership in aligning financing with sustainability performance.

In FY25, Downer successfully refinanced $1 billion of its syndicated SLL facility, resizing it to $1.3 billion following a review of funding and liquidity requirements.

The transaction was jointly arranged by Australia and New Zealand Banking Group, Commonwealth Bank, HSBC and Sumitomo Mitsui Banking Corporation, with Commonwealth Bank and HSBC acting as Sustainability Coordinators.

“The successful refinancing is another important milestone for Downer with our improved operating performance and strong financial position supporting the achievement of improved terms. The refinancing also positively lengthens our average debt maturity profile to approximately 3.4 years,” The Chief Financial Officer of Downer, Malcolm Ashcroft said.

Sustainability Linked Loan – Second Party Opinion is available here.