MACQUARIE Group announced April 16 the issue of a US$300 million Samurai loan facility (the Facility), including a US$150 million green tranche. The Facility is a first of its kind, green loan issued by an Australian financial institution into the Japanese market.

Proceeds from the green tranche will support eligible green projects that provide clear green benefits under Macquarie’s Green Finance Framework, including development of wind and solar farms, waste-to-energy plants, green buildings and clean transportation projects.

The Facility will adopt the four pillars identified in the Green Loan Principles published in March 2018 by the Asia Pacific Loan Market Association (APLMA). Based on a similar framework to the Green Bond Principles, the pillars seek to establish best practice across use of proceeds; project evaluation and selection; management of proceeds; and reporting.

The Facility builds on Macquarie’s significant and longstanding commitment to green energy and technology as a fund manager, adviser, financier, participant in environmental markets and investor alongside clients.

The Facility was arranged by Sumitomo Mitsui Banking Corporation (SMBC) and Macquarie Capital Securities Japan Limited (Tokyo Branch) with the participation of four Japanese bank financiers.

Stuart Green, Macquarie’s group treasurer says: “This transaction is a fantastic achievement in current market conditions that provides funding diversification for Macquarie Group targeted at a core area of our business and with new strategic investors from Japan.”

Takuji Watanabe, Macquarie’s Japan country head, says: “The transaction is an important milestone in our efforts to build Macquarie’s platform in Japan in our 20th anniversary year, and we look forward to the continuation of our strong relationship with SMBC and further business opportunities.”