A $170.5 million refinancing of the Mundaring Water Treatment Plant (MWTP) in Western Australia signals a new phase of maturity for sustainable finance in Australia, with the debt facility becoming the country’s first ‘Blue Loan’ aligned to recognised Blue Finance Guidelines Version 2.0 from World Bank subsidiary the International Finance Corporation (IFC).

Widely considered an extension of the more commonly known Green Loan, blue finance is an emerging area of climate finance that aims to support the sustainable use of freshwater resources, protect marine environments, and help drive capital towards the ‘blue economy’.

Located approximately 30 kilometres east of Perth, MWTP supplies drinking water to more than 100,000 people in the Goldfields region. It is operated by Helena Water, a consortium that was appointed in 2011 by the State of Western Australia via Water Corporation and comprises Aberdeen Investments, Acciona Agua and TRILITY.

Helena Water, supported by its financial advisor Planum Partners, and banking partners Commonwealth Bank of Australia (CBA) and Banco Bilbao Vizcaya Argentaria (BBVA) who acted as Joint Sustainability Coordinators, refinanced the facility in March 2026 as a Blue Loan.

The IFC’s Blue Finance Guidelines Version 2.0, released in September 2025, support the credible application of the Blue label to assets and projects that make a substantial contribution to the sustainable use of freshwater resources, while managing relevant environmental and social risks and opportunities.

MWTP’s eligibility under the Blue Finance Guidelines is underpinned by the plant’s strong sustainability credentials. Designed with a “whole-of-life” sustainability approach that balances environmental protection with long-term operational efficiency, MWTP operates with a 99 per cent recycling rate for waste, zero water loss and utilises a growing share of renewable energy in its operations. Advanced treatment technologies and circular processes further maintain high water quality, minimise chemical use, and eliminate landfill waste. The plant has also invested in electric vehicle charging for staff and visitors and a new EV for use onsite.

The Joint Sustainability Coordinators supported Helena Water to obtain a Second Party Opinion on the Blue Loan from independent assurance provider ERM CVS. This independent opinion confirms the Blue Loan is aligned with both the IFC Blue Finance Guidelines Version 2.0 and the APLMA Green Loan Principles 2025 and that its proposed use of proceeds is expected to contribute positively to environmental outcomes and sustainable development.

“This project demonstrates how essential infrastructure can deliver real community value – providing water to more than 100,000 people in the Goldfields region while achieving strong environmental outcomes to help protect vital water resources,” said Jaime Gutierrez, Director at Aberdeen Investments Concession Infrastructure team.

“Helena Water’s pioneering transaction is supported by its commitment to responsible freshwater management. Introducing Blue Loans to the Australian market is an important step in expanding the breadth of sustainable finance issuance, while directing capital to essential water infrastructure that supports a resilient, future-ready economy,” said Charles Davis, Managing Director Energy, Commodities and Sustainability at Commonwealth Bank.

“We are pleased to support Helena Water to structure the Blue Loan, which highlights the relevance of sustainable finance to a broad range of infrastructure assets with unique considerations, such as the protection and efficient management of scarce water resources,” added Seth Munday, Managing Director responsible for Project Finance Asia Pacific at BBVA.

Planum Partners CEO Shaun Newing, saw this as a significant milestone for the MWTP and Australia’s sustainable infrastructure financing.

“Achievement of the Blue Loan with a supportive Second Party Opinion is a great result for our clients Aberdeen Investments, Acciona Agua and TRILITY. This highlights the role infrastructure can play in delivering clear, measurable environmental outcomes,” he added.

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