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15 Apr 2016

Clayton Utz congratulates NSW Government and RMS on IPA Financial Excellence Award

Sydney, 15 April 2016: The Monetisation of the M7 Motorway Base Rent, on which Clayton Utz was legal adviser, has won the Financial Excellence Award at the 2016 National Infrastructure Awards by Infrastructure Partnerships Australia (IPA).

The Financial Excellence Award recognises financial innovation and excellence in Australian infrastructure projects for the 2015 calendar year. The Monetisation of the M7 Motorway Base Rent was recognised for being the first of its kind in the Australian market.

The innovative transaction by the NSW Government and Roads and Maritime Services (RMS) successfully securitised a stream of base rents from Westlink M7 (the private operator of the M7 Motorway) payable to Roads and Maritime Services (RMS). With a tenor of 22 years, the notes were sold for $175 million to UK based insurer Rothesay Life.

Proceeds from the transaction are expected to support the NSW Government's funding of the NorthConnex Motorway currently in construction.  

Clayton Utz advised the NSW Government and RMS on all the legal aspects of this transaction, including drafting and negotiating the sale and issuance documents, providing opinions in relation to the structure and RMS' power and advising generally on the bidding process and on completion. Macquarie Capital (Australia) Limited was financial adviser to government as well as providing structuring and marketing advice. KPMG advised government on accounting matters, while Perpetual Trustee entities acted as trustee and security trustee for the structure.

Clayton Utz securitisation partner Andrew Jinks and major projects partner Stuart Cosgriff were the lead legal advisers on the transaction.

Commenting on the recognition of the deal, Stuart said the firm was proud to have supported the NSW Government and RMS in successfully completing the award-winning transaction.

"The Monetisation of the M7 Motorway Base Rent is the very first monetisation of a government project undertaken in Australia, and its success is an achievement in itself. We are delighted the transaction has been recognised with the Financial Excellence accolade and congratulate the NSW Government and RMS on this outstanding accomplishment."

Andrew noted that, notwithstanding the complexity of the transaction, all parties worked together efficiently and commercially towards a common goal to deliver a transaction that not only stood on its own merits but is a precedent for other monetisations by Australian government entities.

The 2016 National Infrastructure Awards were announced at the IPA's Annual Infrastructure Oration and 2016 National Infrastructure Awards dinner in Sydney last night. The Awards celebrate and acknowledge the innovation and excellence of Australia's public and private sectors in the delivery of infrastructure.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.