Endeavour Energy secures landmark sustainability-linked financing

Endeavour Energy has successfully secured A$2.065 billion in financing under new Sustainability Linked Loans (SLLs), reinforcing its commitment to environmental responsibility. The financing is aligned with the Asia Pacific Loan Market Association (APLMA) Sustainability Linked Loan Principles and marks a significant milestone in Endeavour’s journey towards net zero.

ANZ and The Commonwealth Bank of Australia acted as joint Sustainability Coordinators, with ANZ, The Commonwealth Bank of Australia and MUFG serving as Mandated Lead Arrangers and Bookrunners among a syndicate of 17 banks, while Acton Advisory acted as Endeavour Energy’s Financial Advisor.

Endeavour Energy’s Chief Financial Officer, Francoise Merit, said: “As one of the fastest growing and most efficient electricity distribution network service providers in Australia, Endeavour Energy continues to lead the way in responsible, future-focused infrastructure investment, delivering real impact with tangible outcomes in emissions reduction, biodiversity, health and well-being and circularity.

“This latest transaction brings Endeavour Energy’s total sustainability-linked financing to over A$3 billion, representing ~40 percent of our debt, and in part refinances our inaugural landmark $920 million SLL which closed in 2022, demonstrating the extent of our strengthened commitment and ensuring that sustainability continues to sit at the heart of our operations as we work towards our goal of decarbonising the grid by 2035,” she added.

As part of the new SLL, Endeavour Energy has updated and extended key performance indicators (KPIs) focused on greenhouse gas emissions reduction, landfill waste diversion and net habitat gain, while introducing a new Scope 3 greenhouse gas emissions target.

The extended KPIs include:

• Absolute Scope 1 and 2 greenhouse gas emissions reduction (excluding line losses)
• Absolute waste diverted from landfill (operational)
• Net habitat gain, calculated as the amount of habitat enhanced or restored plus habitat protected (on and offsite), less the habitat removed during a selected time period.

Francoise said, “This new target was the toughest to incorporate, but given Scope 3 emissions form a highly material component of Endeavour Energy’s total emissions profile, it was important to Media Release 2 embrace and will be a critical step in supporting our strategic ambition to decarbonise the grid by 2035.”

Endeavour Energy remains the only known electricity distribution network service provider in Australia to access sustainability-linked financing, underscoring its leadership in sustainable energy infrastructure.

David Simmons, Executive Director - Sustainable Finance, ANZ said: “Endeavour Energy’s latest sustainability-linked loan targets demonstrate ambition across a range of metrics including emissions reduction, as well as restoration of habitat and diversion of waste from landfill.

“This deal also builds on ANZ’s reputation as a leading provider of sustainable finance, and we hope it encourages broader participation in the sustainable finance market within the energy sector and beyond.”

Charles Davis, Head of Sustainable Finance and ESG, Commonwealth Bank of Australia said: “The build-out of Australia’s energy infrastructure is central to our nation’s energy transition, and finance plays a key role in powering that progress. We’re proud to support Endeavour Energy with a A$2.065 billion sustainability-linked loan (SLL) that reinforces the company’s commitment to environmental responsibility by tying loan pricing to key performance indicators including greenhouse gas emissions reduction, landfill waste diversion and net habitat gain.

“As Joint Sustainability Coordinator, Mandated Lead Arranger and Bookrunner, CBA is committed to helping clients like Endeavour Energy lead the way toward a more sustainable future economy.

“This transaction marks a significant evolution in the sustainability-linked financing landscape, demonstrating how repeat issuers can meaningfully update and extend their targets to deepen impact. We congratulate Endeavour’s continued sustainability progress within the Australian electricity distribution sector. The inclusion of a Scope 3 KPI reflects ongoing maturation in sustainability performance and will support Endeavour in progressing towards its net-zero by 2040 ambitions.”

For media enquiries, to arrange an interview, photos or video footage please contact:
Vida Cheeseman, Endeavour Energy
Phone: 0410 597  547,
Email: vida.cheeseman@endeavourenergy.com.au