Plenary completes $1.2 billion refinance of High Capacity Metro Trains project

MELBOURNE, AUSTRALIA – Plenary Group has completed a $1.2 billion refinancing of the High Capacity Metro Trains project.

The refinancing was supported by a syndicate of global and local investment and commercial banks, reinforcing the strong support this project has from major financial institutions.

As part of the refinancing, the facilities have maintained their Green Loan certification by the Climate Bonds Initiative (CBI). As the international standard based on the proceeds used for clear environmental benefits that are assessed, measured and reported by the borrower, this reflects the ongoing environmental and sustainability results being achieved by the project.

Evolution Rail CEO Phillip Walker said, “The successful refinancing and strong support from financiers adds to the ongoing success of the project, with the full fleet of 70 new trains all delivered and in revenue service, with more than 12 million kilometers travelled so far.

“In addition, the leading-edge Pakenham train maintenance facility is fully operational and servicing the fleet, and the two aircraft quality simulators are fully operational and have trained well over 700 drivers so far.”

Plenary Executive Director Damien Jaipaul added, “Having been involved since its inception as project sponsor, financial advisor, equity investor and SPV manager, Plenary are pleased to have delivered on yet another important milestone for the project. The strong refinancing outcome achieved demonstrates the value Plenary adds as a long-term investor, asset manager and financial arranger on the successful delivery of state-significant infrastructure projects.”

The $2.4 billion public-private partnership sees the Plenary Group-led Evolution Rail consortium – also comprising Partners Group, Downer and CRRC – partnering with the Victorian Government to deliver and maintain 70 new high-capacity trains and two new maintenance facilities for Melbourne’s rail network.

Evolution Rail financed, designed, constructed and commissioned the new fleet and supporting facilities and will be maintaining them over the next 30 years.

Plenary Group was the financial advisor on the deal, Clayton Utz was the sponsor’s legal advisor, and King & Wood Mallesons was the lenders’ legal advisor.

This refinancing adds to Plenary’s capability as financial arranger in the Australian infrastructure sector and follows the successful refinancing of the Queensland Schools and Western Roads Upgrade public-private partnerships in 2023.