17 October 2023
Clifford Chance advises Commonwealth Bank of Australia on Gold Fields' A$500 million sustainability-linked loan, a first in the Australian gold mining industry
Global law firm Clifford Chance has advised Commonwealth Bank of Australia (CBA) as the sole sustainability coordinator, mandated lead arranger and bookrunner, and facility agent in relation to a sustainability-linked A$500 million syndicated credit facility for Gold Fields Limited (Gold Fields), the seventh largest gold producer in the world. This is one of the first sustainability-linked loan transactions in the Australian mining industry and the first for a gold mining company in the country.
The five-year syndicated credit facility, with a A$100 million accordion option, will enable Gold Fields to receive a margin adjustment based on its performance against ESG-related goals such as increasing female representation in its workforce, reducing carbon emissions and using more recycled water.
The team was led by Perth partner Mark Gillgren, supported by senior associate Nick Henneberry and associate Anurag Chadha in Sydney, and Belinda Brady and Siew Mei Yong in Perth.
Mark said, “We are delighted to have supported the CBA team on the first sustainability-linked loan transaction in the Australian gold mining industry. With industries and financiers working closely together to achieve more sustainable outcomes, we anticipate that this landmark transaction will pave the way for future sustainable finance transactions in this sector.”
The Clifford Chance team in Australia has advised on several market-leading green and sustainable finance transactions, including the Commonwealth Bank of Australia on the country's first sustainability-linked syndicated inventory financing for Viterra, Xpansiv on Blackstone's US$400 million investment in its global carbon and environmental commodities exchange platform, and Partners Group on the sale of CWP Renewables, which involved an innovative portfolio-level debt financing.