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Westpac supports Pact Group with first Sustainability-Linked Loan in the manufacturing sector in Australia

12 September 2022


In an an Australian manufacturing sector first1, Pact Group has converted $420 million of existing loan facilities into Sustainability-Linked Loans (SLLs), offering Pact margin discounts to deliver against set Sustainability Performance Targets. Westpac acted as Joint Sustainability Coordinator and Lead Arrangers for the loans.

Pact Group’s Sustainability Performance Targets are aligned to the following Key Performance Indicator areas:

  • Increase in the percentage of recycled content across their packaging portfolio – aligned to Pact’s End of Waste Promise to offer 30% average recycled content, an equivalent of keeping nearly two billion plastic containers out of landfill;
  • Increase in amount of recycled material processed and distributed to the external market – aligned to Pact’s plans to have capacity to recycle up to 120,000 tonnes of plastic waste per annum;
  • Reducing scope 1 and 2 greenhouse gas emissions – aligning with Pact’s newly announced 50% emissions reduction by 2030 target; and
  • Reducing the gender pay gap.

Kirsty McCartney, Associate Director Sustainable Finance, Westpac Institutional Bank, said Westpac is proud to partner with Pact which is helping to lead the growth of Australia’s circular economy and to deliver our national packaging targets.

“Pact has committed to sustainability goals that will directly impact our national packaging targets as well as reduce greenhouse gas emissions and improve gender pay equality. By committing to these goals through these SLLs, Pact will create alignment across their whole organisation to deliver their goals, and be financially rewarded when they achieve them.

"We are extremely pleased to support not only the first manufacturing SLL in Australia, but also one that will drive Australia’s circular economy,” Ms McCartney said.

Pact Chief Financial Officer, Paul Washer, said: “Pact’s vision is to lead the circular economy and sustainability is at the forefront of that vision. That also aligns with the expectations of investors and financiers, so we are delighted to receive the support from Westpac to convert a significant portion of our existing loan facilities into Sustainability-Linked Loans.”

Globally, the value of SLL issuance has now exceeded USD 1 trillion, with SLLs also remaining the leading sustainable debt instrument issued by borrowers accumulatively across Australia and New Zealand in 2022 to date making up over 30% of sustainable debt issuance2


Based on publicly announced transactions in Australia as of 12 September 2022
Source: BloombergNEF

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