CBA has led a $190m refinance for Team Global Express with key institutional investors, accelerating the firm’s fleet replacement program and sustainability agenda.
Commonwealth Bank (CBA) announced today it has led a $190 million syndicated structured asset-backed lending facility for Team Global Express (TGE) in a move designed to meet evolving consumer expectations for more environmentally friendly logistic solutions as demand for national deliveries continue to accelerate.
The financing will support Team Global Express’ fleet investment, including the procurement of lower-emission vehicles, which will in turn assist Team Global Express’ customer base with reducing their Scope 3 emissions.
As lead bank, CBA led the transaction through its structuring and distribution expertise with a number of lenders including IFM Investors, Daimler Truck Financial Services, Income Asset Management and the Clean Energy Finance Corporation (CEFC), supported by G+T and Lander & Rogers as legal advisers for lenders and Team Global Express respectively.
The market appetite for the transaction reflects the improved business profile of Team Global Express and will allow TGE to efficiently finance its transition while also offering funding diversity to support its growth aspirations.
CBA Group Executive Institutional Banking and Markets Andrew Hinchliff said: “CBA is committed to supporting businesses, projects and assets that will support the nation’s net- zero ambitions. The transport sector and shift towards lower-emission vehicles can play a key role in helping to meet those ambitions.
“Team Global Express continues to be at the forefront of providing Australian businesses with sustainable transport solutions. We’re pleased to continue supporting Team Global Express’ transformation, whilst assisting with promoting Team Global Express’ importance to the sustainably-minded investor market.
Mr Hinchliff said the transaction also demonstrates development in Australia’s growing private debt market and highlights CBA’s structuring and syndicating expertise in solving for customer needs.
Team Global Express Group CEO Christine Holgate said: “Team Global Express is very pleased to work again with our trusted partner, the Commonwealth Bank, and believe their support reinforces the significant inroads we have made on our transformation journey.
“Team Global Express operates across all four transport modes of air, road, rail and sea, and this funding will allow us to further integrate our leading Australian network and introduce products and services that our customers across Australia will benefit from.
“We know our long-term success is dependent on our ability to operate sustainably, adapt to changing conditions, and partner across the supply chain to strengthen our focus on ESG. Our mission is to be Australia’s most sustainable national logistics solutions partner. Earlier this year we commenced the roll out of Australia’s largest logistics electric vehicle fleet and our partnership with CBA was instrumental in funding the ground-breaking project.”
