Monash University establishes SLL facility as part of sustainability commitment

As part of a successful $380m debt refinance, Monash University has established a $105 million five-year Sustainability Linked Loan (SLL) facility with ANZ and Westpac and made its debut in the A$MTN market with a A$175m 7-year transaction.

The SLL transaction is part of Monash University’s ambition to pursue innovative solutions in partnership with industry and the community to make a greater sustainability impact.

Founded in 1958, Monash University (Monash) is a member of the Group of Eight research intensive universities in Australia. Monash is a global, research-intensive university, delivering education and research excellence with impact in Australia and across the Indo-Pacific.

SLLs aim to facilitate and support environmentally and socially sustainable performance improvements by linking the cost of capital to the achievement of sustainability performance targets.

Monash’s SLL agreement aligns with the University’s commitment to driving sustainable change and empowering its community to contribute positively to sustainable development.

The SLL has been developed with ANZ as the Sole Sustainability Coordinator, and Westpac as Joint Lender.

Leigh Petschel, CFO and Senior Vice-President for Monash University, said the agreement is significant for the University because it supports the sustainability work already underway and will set tangible targets that are linked to the University’s cost of funding

The targets focus on a reduction in scope 1 and 2 emissions of 72% during the term of the loan, a reduction in general and Construction & Demolition waste going to landfill, the number of students and staff who have completed Monash’s First Nations Cultural Awareness training and the number of students who complete the Global Immersion Guarantee program.

“These are important targets for the University as they encourage greater awareness and leadership, reduce emissions and waste, and deliver valuable training and insights into national and global issues, providing a broader understanding for students and staff,” Mr Petschel said.

The four ambitious Sustainability Performance Targets address the areas in which the University can make the greatest sustainability impact including greenhouse gas emissions, waste, First Nations cultural awareness and sustainability-related education.

The targets align with Monash’s broader ESG Statement and commitments, including its commitment to Net Zero Emissions by 2030.

The SLL adds to Monash’s existing Climate Bond program which was established in 2016 and has helped fund new and existing projects related to renewable energy and green buildings.

ANZ worked with Monash to update its existing Green Bond Framework, which has been renamed the Monash University Sustainable Finance Framework. The Framework covers the University’s objectives, how it will issue and manage sustainable debt products including SLLs and Climate Bonds, and how these align with the University’s ambitious strategic objectives.

ANZ’s Christina Tonkin, Managing Director, Corporate Finance said “ANZ is very proud to support Monash University in its first Sustainability Linked Loan. The transaction will help accelerate Monash’s strong sustainability strategy.”

“Monash University is to be commended for its vision and commitment to environmental development and social impact,” Ms Tonkin said.