Financial close achieved on next stage of Sydney Metro
Published 04 December 2019
SYDNEY, AUSTRALIA: Plenary Group has achieved financial close on the $3.7 billion next stage of Australia’s biggest public transport project, Sydney Metro.
As principal commercial adviser, investor and financial arranger for the extended public-private partnership (PPP) contract, Plenary has refinanced the Sydney Metro Northwest PPP and raised new debt and equity to finance the Sydney Metro City and Southwest PPP.
Bank debt is being provided by leading domestic and international banks ANZ, Crédit Agricole CIB, HSBC, ING, Intesa Sanpaolo, KfW, Mizuho, MUFG, NAB, OCBC, SMTB, UOB and Westpac.
Equity financing comes from MTR (27.55%), Caisse de dépôt et placement du Québec (24.9%), Marubeni (20%), Plenary (17.55%) and Pacific Partnerships (10%).
As part of a long-term commitment to the success of Sydney Metro both Plenary and MTR have increased their investment. In addition, the investment qualities of the project have been recognised with one of the world’s largest infrastructure investors in CDPQ joining the investor group.
Plenary CEO Paul Oppenheim said being able to achieve financial close on the City and Southwest extension while refinancing the existing Northwest PPP at the same time was a significant outcome that delivered certainty and value to the government.
“This deal is a great advertisement for the flexibility of PPPs,” Mr Oppenheim said.
“The excellent financing result has provided a refinancing gain to the State and demonstrates the underlying strength the private sector sees in the Sydney Metro project.
“A robust and disciplined effort was required by Plenary and the whole NRT consortium to satisfy the New South Wales Government and achieve this significant value-for-money outcome.”
The contract package includes the delivery of 23 new metro trains and core rail systems as well as operations and maintenance.
The Northwest Rapid Transit (NRT) consortium will operate the combined North West and City and Southwest lines until 2034, providing a turn-up and go service along a dedicated 66-kilometre line with 31 stations from Tallawong to Bankstown.
Mr Oppenheim said the performance of the Metro North West Line has been continually improving since it opened earlier this year.
“More than 75,000 people now catch the line’s turn-up-and-go service each weekday,” Mr Oppenheim said.
“Ninety nine per cent of services have been delivered since September, and more than 97 per cent of those have run on time since October.
“The whole NRT consortium looks forward to continuing this improvement to ensure Sydney Metro is one of the world’s great metros.”
Construction work on the Sydney Metro City and Southwest project is underway, and the line is expected to be operational from 2024.
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