BBVA Co-Leads Australia’s First Blue Loan to Support Sustainable Water Infrastructure at Mundaring Facility

BBVA Co-Leads Australia’s First Blue Loan to Support Sustainable Water Infrastructure at Mundaring Facility

(IN BRIEF) BBVA, together with Commonwealth Bank of Australia, has structured Australia’s first blue loan to refinance the Mundaring Water Treatment Plant in Western Australia, marking a significant step in the evolution of sustainable finance. The $170.5 million transaction aligns with the International Finance Corporation’s Blue Finance Guidelines and supports a facility that supplies water to more than 100,000 homes. Operated by Helena Water, the plant demonstrates strong sustainability performance through renewable energy use, high recycling rates, and zero water loss. The deal highlights the growing importance of blue finance in funding infrastructure that protects water resources while delivering essential services. It also reflects BBVA’s expanding role in advancing innovative financing solutions that support environmental resilience and long-term infrastructure sustainability.

(PRESS RELEASE) BILBAO, 24-Apr-2026 — /EuropaWire/ — BBVA has played a leading role in arranging Australia’s first blue loan, supporting sustainable water infrastructure through a $170.5 million refinancing of the Mundaring Water Treatment Plant (MWTP) in Western Australia. Acting as Joint Sustainability Coordinator alongside Commonwealth Bank of Australia, BBVA helped structure the transaction in alignment with the Blue Finance Guidelines Version 2.0 developed by the International Finance Corporation.

Blue finance, an emerging segment within sustainable finance, focuses on protecting water resources, preserving aquatic ecosystems, and promoting investments in a resilient water economy. The Mundaring facility, located approximately 30 kilometres east of Perth, plays a critical role in supplying drinking water to over 100,000 households in the Goldfields region.

The plant is operated by Helena Water, a consortium appointed by the State of Western Australia through Water Corporation. Its partners include Aberdeen Investments, Acciona Agua, and TRILITY. Supported by advisory firm Planum Partners, the consortium completed the refinancing in March 2026 in accordance with international sustainability standards and established market practices.

The Mundaring Water Treatment Plant has been designed with a lifecycle sustainability approach, integrating environmental considerations with operational performance. Its compliance with IFC’s Blue Finance Guidelines played a key role in enabling the transaction. The facility demonstrates strong environmental credentials, including the use of 18 percent renewable energy, a 99 percent waste recycling rate, and zero water loss. Advanced treatment systems and circular processes further enhance water quality while minimizing chemical use and eliminating landfill waste.

Through this transaction, BBVA continues to expand its involvement in sustainable and project finance across the Asia-Pacific region. By structuring financing solutions tailored to infrastructure assets with measurable environmental benefits, the bank is contributing to the development of blue finance as a distinct asset class with growing global relevance.

The refinancing highlights how essential infrastructure projects can combine environmental responsibility with community impact. The Mundaring facility not only delivers reliable water supply to a large population but also demonstrates how innovative financing can support long-term sustainability objectives.

This milestone transaction underscores the increasing role of financial innovation in enabling resilient infrastructure development, particularly in sectors such as water management where sustainability outcomes are closely tied to long-term economic and environmental stability.

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SOURCE: BBVA