Port of Melbourne issues multimillion sustainability linked loan

The Port of Melbourne has announced the completion of a $475 million sustainability linked loan (SLL).

The loan, funded by a consortium of 10 banks, is linked to two sustainability indicators covering Scope 1 and 2 emissions reductions, as well as a mental health first aid workplace certification and an overarching gateway target tied to engagement with port stakeholders to facilitate Scope 3 emissions reductions.

Australia and New Zealand Banking Group Limited and BNP Paribas acted as Mandated Lead Arrangers & Bookrunners and Sustainability Coordinators on the transaction.

Saul Cannon, CEO at Port of Melbourne, said: “The deal reflected PoM’s goal of working with stakeholders to build a sustainable port for the benefit of the Victorian economy and livability of Melbourne.

“As Australia’s largest general cargo and container port, we are committed to facilitating the decarbonisation of the port’s supply chain, minimising the port’s impact on our land, air and waters and building strong stakeholder relationships.

“Linking an element of our financing structure to sustainability embeds our people, our environment and our stakeholders into what we do now and in the future.”

In April, the Port of Melbourne signed a Memorandum of Understanding (MoU) with Maersk, ANL, Svitzer, Stolthaven Terminals, HAMR Energy, and ABEL Energy to investigate the business viability of building a green methanol bunkering centre.

Along with a new commitment to mental health first aid training and certification, achieving this net zero ambition is a key plank of the new SLL.

“In addition, we’ve committed to engaging with our tenants, shipping lines and other port users on emissions reduction measurement and opportunities,” added Cannon.

In June 2023, International Container Terminal Services (ICTSI) announced that the project to accept bigger ships at the Port of Melbourne’s Victoria International Container Terminal (VICT) is on track to be completed by 2024.

Additionally, the Port of Melbourne reported that overall container traffic, both full and empty, was lower in July 2023 compared to the previous year.