Investor Presentaiton

SUSTAINABLE FINANCE CASE STUDY: SYDNEY AIRPORT AUD$1.4 BILLION SUSTAINABILITY LINKED LOAN FACILITY AUD$1,400,000,000 Transaction Highlights Sydney Airport Sydney Airport Finance Company Pty Ltd 3/4/5 year Sustainability Linked Loan ANZ Joint Sustainability Coordinator and Bookrunner Borrower: Tenor: Size: Loan Type: Loan Structure: Margin: Third Party Verification: December 2018 Transaction Summary Sydney Airport Finance Company Pty Limited 3/4/5 years AUD 1,400,000,000 Sustainability Linked Linked to sustainability targets ESG Risk Rating Report provided by Sustainalytics pre-deal & annually Sydney Airport Finance Company Pty Limited • . • . • • • • • Background Sydney Airport (SYD) sought to enhance their management of Environmental, Social and Governance (ESG) risks via a syndicated Sustainability Linked Loan (SLL) facility. The SLL establishes a direct link between SYD sustainability performance and cost of capital. The issuance of the first syndicated SLL in Australia, ties the airport's sustainable objectives and outcomes to its funding program or cost of capital. The SLL offers an alternative to the Green Loan / Green Bond "Use of Proceeds" approach allowing borrowers to leverage their sustainability credentials and ambitions to access finance for general corporate purposes. First syndicated sustainability linked loan in Australia ANZ supported SYD in this first syndicated SLL in Australia and the largest syndicated airport SLL globally. The SLL incentivises SYD to improve its sustainability performance against a set of ESG criteria. Sustainalytics will evaluate SYD's ESG performance annually, SYD is rated 15.1 (4th of 38 airports). • The sustainability linked discount rewards SYD for improving sustainability performance. SYD demonstrates its commitment to sustainability with a margin premium if sustainability performance regress to a certain level. ANZ's value add ANZ worked closely with SYD and Sustainalytics to understand key drivers of the ESG rating and determine an achievable, but ambitious target rating. ANZ worked with SYD and its co-bookrunner to determine the appropriate legal framework. The target ESG Risk Rating is deliberately ambitious, ensuring that SYD remains committed and accountable to improving its sustainability performance throughout the SLL. ANZ 43

View entire presentation