The agreement was reached with a syndicate of banks on a new A$1.5 billion, three-year sustainability-linked bank guarantee facility.
It’s the first such sustainability linked bonding facility to be arranged in Australia, and one of the largest globally.
John Holland Chief Financial Officer Darryn Ray said the new arrangement would support the Group’s strategy to pursue sustainable growth.
“The facility reflects the strong support of our relationship banks and enhances our ability to pursue the significant number of projects coming through the pipeline,” Mr Ray said.
“We are working towards a more sustainable construction industry. At the end of the day, it’s about ensuring the projects we build have the maximum positive impact for local communities.”
The bonding facility was jointly arranged by HSBC and NAB, with HSBC acting as Sole Sustainability Co-ordinator.
Head of Leveraged, Acquisition and Syndicated Finance for HSBC Bank Australia Michael Rossiter said the bank was delighted to have partnered with John Holland on this transaction.
“John Holland’s commitment to a range of KPIs shows the potential for sustainable financing to deliver not just positive environmental outcomes but also outcomes with broader societal benefits,” Mr Rossiter said.
“This is a significant milestone in John Holland’s agenda for creating a more sustainable future in the construction industry.”
Global Head of Corporate Origination for National Australia Bank Mark Bower said the ability of John Holland to increase its facility to $1.5bn in this format showed its Sustainability Framework and goals were strongly aligned with the finance community and the future of sustainable construction.
“We are focused on arranging facilities for customers that support sustainability and innovation, as demonstrated by John Holland,” Mr Bower said.
The new bonding facility embeds four sustainability linked Key Performance Indicators (KPIs) that are unique to John Holland and aligned to its Sustainability Framework, focused on integrating economic growth, environmental resilience and social progress as priorities in decision-making, with the ambition to create long-term value.