Downer EDI has announced the completion of the refinancing of $500 million of its $1.4 billion syndicated sustainability linked loan facility.
The facility consists of four tranches with different maturities.
The refinancing of the $500 million tranche, which was set to mature in November 2024, was launched in October 2023.
In addition to the refinancing, Downer has also established a new sustainability linked financing framework.
This framework will support the issuance of sustainability linked loans and contingent instruments, such as bank guarantees and performance bonds, across the company's broader financing portfolio.
Downer's chief financial officer, Malcolm Ashcroft, said the successful refinancing improves the company's debt maturity profile and reduces medium-term refinancing risks.
He also highlighted the importance of the new sustainability linked financing framework in aligning the company's financing and sustainability strategies.
The refinancing was arranged by Australia and New Zealand Banking Group, Mizuho Bank, MUFG Bank, and Westpac Banking Corporation.
Australia and New Zealand Banking Group and MUFG Bank also acted as sustainability coordinators.
Downer Group is currently rated BBB with a negative outlook by Fitch Ratings.
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