BBVA has acted as Joint Sustainability Coordinator in the structuring of Australia’s first ‘blue loan’, aligned with the recognised Blue Finance Guidelines Version 2.0 from the World Bank subsidiary, the International Finance Corporation (IFC), linked to the refinancing of the Mundaring Water Treatment Plant (MWTP) in Western Australia for $170.5 million.
Widely considered an extension of the more commonly known green loan, blue finance is an emerging area of climate finance that aims to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.
The plant, located around 30 kilometres east of Perth, supplies drinking water to more than 100,000 homes in the Goldfields region. It is operated by Helena Water, a consortium appointed in 2011 by the State of Western Australia through Water Corporation. The consortium includes Aberdeen Investments, Acciona Agua and TRILITY.
Helena Water, supported by its advisor Planum Partners, and banking partners BBVA and Commonwealth Bank of Australia (CBA) as Joint Sustainability Coordinators, refinanced the facility in March 2026 in line with external guidelines and market best practices to maintain ongoing operation. BBVA’s role in this transaction builds on its expertise in sustainable finance and project finance in the Asia Pacific. By structuring tailored solutions for infrastructure assets with strong environmental performance, BBVA is helping to pioneer blue finance, an emerging asset class with few precedents globally.
The MWTP was designed with a whole-of-life sustainability approach, combining environmental protection with long-term operational efficiency. Its alignment with the Blue Finance Guidelines of the International Finance Corporation (IFC) supported the structuring of the refinancing.
The financing recognises the plant’s sustainability performance, including 18% renewable energy use, a 99% waste recycling rate and zero water loss. Advanced treatment technologies and circular processes help maintain water quality, reduce chemical use and eliminate landfill waste.
Seth Munday, as Managing Director responsible for Project Finance Asia Pacific in BBVA, added “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 and unique considerations, such as the protection and efficient management of scarce water resources”.
“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.
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.
This transaction highlights the growing role of innovative financing structures in supporting resilient water infrastructure and reflects increasing momentum in the development of blue finance, an area where institutions such as BBVA continue to expand their capabilities globally.