7minZenith Energy Pty Limited (‘Zenith’) has announced the completion of a A$1.9 billion refinancing and upsizing of its existing bank debt facilities. This increased limit provides Zenith with more than A$1 billion of growth capital to support the development of new projects for its customers.
Supported by a strong syndicate of Australian and international lenders, the transaction creates material funding headroom as Zenith supports the significant and immediate opportunities presented by the decarbonisation of Australia’s mining sector. ANZ, BNP Paribas, Bank of China, Canadian Imperial Bank of Commerce, Deutsche Bank, DBS Bank, Export Finance Australia, MUFG, National Australia Bank, Natixis CIB, Royal Bank of Canada, Societe Generale, Sumitomo Mitsui Banking Corporation, and Westpac were all lenders to the transaction.
A portion of the transaction includes green loan facilities underpinned by Zenith’s Green Finance Framework (‘Framework’) which was developed in accordance with the Asia Pacific Loan Market Association (‘APLMA’) Green Loan Principles. The Framework complements Zenith’s commitment to sustainability and its ambition to support the energy transition of the Australian resource sector by delivering renewable power technologies and lower emissions solutions for mine site energy supplies. BNP Paribas, National Australia Bank, and Sumitomo Mitsui Banking Corporation acted as Joint Green Loan Coordinators in the development of the Framework and the green loan structure. Sustainalytics acted as Second Party Opinion provider.
Zenith is one of Australia’s leading Independent Power Producers, specialising in the delivery of sustainable and reliable remote hybrid power generation solutions for clients supporting the energy transition, producing gold, lithium, rare earths and nickel together with Zenith’s urban microgrid business. Zenith’s solutions are critical for enabling the powering of remote mining operations to transition towards renewable energy, while maintaining the necessary reliability for 24/7 operations.
Zenith’s CFO, Tim Cipolloni, commented: “We are pleased with the continued support from our existing lenders and welcome a new cohort of high-quality lenders. This transaction is perfectly timed to assist the delivery of our pipeline of growth projects, which are focused on renewable energy penetration. The scale of this support provides strong validation of Zenith’s strategy and capabilities, reinforced by the renewal of existing contracts and a robust pipeline of new opportunities.
“The green loan portion of our facilities recognises our success in delivering high penetration renewables solutions for our customers and sets the framework for continued implementation of these types of projects, which are critical for us to support our mining clients achieve their decarbonisation objectives.”
Zenith’s financing is further enhanced by the continued support from its institutional shareholders, Pacific Equity Partners, Foresight Group and OPTrust. RBC Capital Markets and Azure Capital acted as Joint Financial Advisers for the transaction. Allens acted as legal counsel to Zenith, and King & Wood Mallesons represented the syndicate of lenders.
