The $1 billion Gold Coast Rapid Transit Project reached financial close in early June and comprises funding from $365 million of bank debt; $65 million of equity; and capital contributions from three levels of government amounting to approximately $950 million (including service payments made over the life of the Project).
Under the Project, the GoldLinQ consortium will build, operate and maintain a 13 kilometre light rail system extending from Griffith University to Broadbeach.
The Project required innovative thinking due to the unique challenges involved in structuring and documenting a regime to coordinate the timing and commitment of the capital contributions from the government, the offshore financiers and equity.
The Project is also significant as it is the first PPP since the GFC to have a debt tenor (approximately 18 years) which extends to the full term of the Project. The complexity of addressing the issues associated with the tenor of this financing brought about further challenges for all parties.
Mallesons actively worked with its clients and GoldLinQ to develop an appropriate structure and risk allocation regime which addressed the challenges faced by the parties and we expect that the Project may form a positive template for future PPPs.
The Mallesons team was led by partner Mark Upfold and supported by Peter Staciwa, Ruchi Sharma and Erin Piatek from the Energy, Resources and Projects team who worked on the project issues and the debt and equity funding streams. Adam Wallwork and Katherine Sheppard also had roles on construction and operational elements.
"We were delighted to have worked on this innovative PPP financing and enjoyed working with our clients some of whom were funding an Australian transaction for the first time", said Upfold in a statement.
Elle LoweSenior Manager, Corporate AffairsT +61 2
M +61 424 168 080
Samantha MaslenManager, Corporate AffairsT +61 2 9296 3349
M +61 428 469 566