BNZ executed its first Māori agribusiness SLL with Ātihau-Whanganui Incorporation (AWHI) in November, which covered not only traditional environmental targets, but also social and cultural targets for the first time. It embraces the idea that debt and finances can not only enhance environmental outcomes for Māori businesses and their shareholders, but social and cultural outcomes as well, incorporating and reflecting both AWHI’s strategic values and Te Ao Māori.

AWHI are focused on lifting the capabilities of their uri (descendants) and rangatahi (young people) through their rural cadetship programme, providing good quality jobs and setting them up to continue farming their land into the future.

To help them achieve their goals, AWHI will receive further interest rate incentives as more uri enter and complete their cadetships, paving the way for social sustainability into the future. AWHI will also receive interest rate incentives for reducing greenhouse gas emissions by up to six percent across the term of the loan and completing additional waterway protection and biodiversity enhancements beyond compliance and regulatory requirements.

Contact details: Adam Coxhead, Head of Sustainable Finance - Corporate & Institutional Banking, BNZ: Adam_Coxhead@bnz.co.nz; and Alex West, Head of Sustainable Finance – Partnership Banking, BNZ: Alex_West@bnz.co.nz

SUSTAINABLE LENDING FOR INSTITUTIONAL CUSTOMERS

ANZ NZ Institutional wrote 22 sustainable finance deals in FY22, totalling more than NZD$10 billion towards sustainability.

This includes:

NZ’s first sustainability-linked lending for a local authority

Auckland Council and ANZ partnered to create what is believed to be the country’s first sustainability-linked lending for a local authority.

The Council’s existing $200 million standby lending facility with ANZ has been converted into a sustainability-linked loan, they also executed a derivative for $120m. Both are linked to Auckland Council achieving certain sustainability performance targets.

Contact details: Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

HSBC was a joint lead manager for Auckland Council’s €500 million 10-year green bond in November 2021.

This was Auckland Council’s first euro-denominated green bond.

It was also the first green euro bond offering from any non-bank issuer in New Zealand, paving the way for others to follow suit in leveraging HSBC’s European investor distribution capabilities.

The bulk of the bond’s proceeds will be used to fund low-carbon transport, sustainable water management, and energy efficient buildings in the city.

Contact details: Jaclyn Margules, Head of Sustainable Finance, HSBC NZ, jaclyn.margules@hsbc.co.nz

SETTING GOALS: CRAIGMORE AND ASB TEAM UP ON $78 MILLION SUSTAINABLE TRANSITION LOAN

Craigmore Sustainables, one of the largest diversified farm management companies in Aotearoa, has secured $78 million in funding from ASB in an innovative sustainability-focused deal.

The sustainable transition loan provides a pathway to develop and embed Craigmore's sustainability strategy and targets. The company's portfolio includes a mix of dairy, grazing, forestry and horticultural properties covering almost 20,000 hectares throughout New Zealand. Under the loan terms, Craigmore has committed to providing a robust sustainability strategy with targets and an action plan, within 12 months of drawdown.

Craigmore Chief Executive Che Charteris says partnering with ASB will help to achieve its bold aspiration to be a leader in land-based reduction of greenhouse gases.

"Farming, horticulture and forestry have an important role to play in helping to mitigate climate change. While we're pleased with what we've achieved to date, we are constantly looking for innovative ways to reduce emissions and minimise the environmental impact of the farms we work with. We are equally focused on delivering more equitable social outcomes for our more vulnerable rural communities through development, training, job creation, and working with mana whenua.

"Sustainability isn't something you arrive at; it's a long-term journey, and at Craigmore we are committed to constantly aspiring to do and be better."

He said while Craigmore had made strong progress in several key areas of sustainability, the loan terms would enable it to put greater technical rigour around its goals.

Under ASB's sustainable transition loan, the quality of the client's sustainability strategy must be verified by an independent third party.

The sustainable transition loan uses ASB funds allocated under the Reserve Bank's Funding for Lending (FLP) programme which the bank has earmarked for projects that meet sustainability or regional infrastructure criteria.

ASB General Manager Rural Ben Speedy says a key part of ASB's climate change strategy is to support New Zealand's transition to a low emissions economy. Craigmore's transition loan is consistent with the bank's broader goal of supporting customers to progress environmental and social initiatives, he said.

"Increasingly, sustainable finance is an effective tool to help companies accelerate their objectives. We're pleased to provide favourable loans to support customers in doing the right thing and committing to a more sustainable future.

"While already conscious custodians of the land it works across, Craigmore has ambitious sustainability objectives. At ASB, we're inspired by Craigmore's vision and are looking forward to continuing to work with them to realise their goals.

Ultimately this benefits Craigmore, the communities it works in, and New Zealand's rural sector more broadly."

Contact details: James Paterson, Head of Sustainable Finance, ASB, james.paterson@asb.co.nz

Customer: Guardians of New Zealand Superannuation

Instrument: Investments in sustainable transition

Counterparty: Multiple

Amount: US$ 497 million

Customer criteria/requirements:

NZSF has developed its investment approach to support the transition to a low-carbon and more sustainable economy. This includes introducing a new Sustainable Transition Opportunity. Investments made in this investment category in the most recent financial year included:

• A US$97 million investment in Generation Investment Management's Sustainable Solutions Fund IV, a US$1.7 billion fund that invests in high-growth companies that are shifting industries towards sustainability at scale;

• A US$100 million commitment to Wellington Management’s Climate Innovation Fund.

• A further investment of US$100 million in Longroad Energy, a renewable energy company which focuses on developing, owning, and managing wind, solar, and storage projects throughout North America. The investment was with our co-investment partner Infratil, which also invested US$100 million.

• A US$100 million investment in a fund that supports reforestation in Latin America. The Reforestation Fund will invest in a diversified pool of greenfield, climate-positive timberland and wood product processing assets, with a focus on Brazil and Uruguay. The fund undertakes to protect and restore natural forests and ecosystems across at least 50% of the entire portfolio landholdings, and to invest in processing facilities to produce climate positive forest products and create new jobs.

• In August 2023 we committed US$105m into Ara Partners Fund III. Ara Partners, based in the United States and Ireland, focuses on industrial decarbonisation through scaling and rolling out proven processes and technologies, and investing in the companies that support them. Investments aim to facilitate reduction of CO2 emissions by at least 60% compared with the incumbent technologies at competitive cost.

Organisation Name: Genesis Energy Limited (Genesis).

Case study name: Genesis Energy Limited NZ$125m 6 Year Green Bonds (March 2022).

Role of Westpac: Westpac supported Genesis as Arranger, Sole Sustainability Coordinator and Joint Lead Manager (JLM).

Effect: Westpac supported Genesis as Arranger, Sole Sustainability Coordinator and JML to successfully issue a NZ$125m 6 year fixed-rate unsecured, unsubordinated Green Bond on 14th March 2022 (Green Bond). Genesis printed its maximum volume at MS+105bps, the tight-end of the indicative issue margin range.

The transaction was well supported with investors looking through the global geo-political uncertainty. Tailwinds were provided by a number of redemptions (including a NZ$100m maturity from Genesis), the lack of rated retail corporate product at the beginning of the year, and the tenor and strong BBB+ rating, which all helped to secure an exceptional outcome notwithstanding the backdrop. Strong interest was given to the Sustainable Finance Framework (Framework) and to Genesis’ sustainability strategy.

Internal work with Genesis: Westpac supported Genesis to prepare a Framework and identify Eligible Assets to which Green Bond proceeds could be allocated. This Framework was published in late 2021, outlining Genesis’ Sustainability Strategy and recognising Genesis’ focus on sustainability to support its commitment to invest in sustainable assets and outcomes. In this regard, the Framework covered both proceeds-based borrowing, outlining Genesis’s commitment to invest in sustainable assets and sustainability-linked borrowing, incorporating key sustainability performance indicators.

We also supported Genesis to prepare a Green Asset Register, including as assessment of assets eligibility against complex hydropower eligibility. This Green Asset Register articulated in detail, how the net proceeds of the Green Bond will be notionally allocated in accordance with the Framework to finance or refinance eligible assets consistent with the globally agreed Green Bond Principles.

External work with Genesis: Via an introduction by Westpac, Genesis established a verification relationship with a third-party verifier, to provide a Second Party Opinion on the alignment of the Framework to the Green Bond Principles. Westpac also supported Genesis to prepare its Green Bond Terms Sheet and disclose this on NZX.

Partnership and collaboration with Genesis: Westpac always takes a strong partnering approach with customers to position them to execute credible, transparent and market-leading sustainable finance transactions. We continued this approach with Genesis from the initial meeting through to the closure of the transaction and ongoing engagement and support of Genesis in awards submissions and KangaNews events and articles.

We supported Genesis to take a cautious approach regarding the structure of its Sustainable Finance Programme to reduce greenwashing risk and highlight the credible transition strategy that Genesis has implemented. An example of this was enabling Genesis to become the first company in NZ (and only the fifth in the world) to have its sustainable debt aligned to the Climate Transition Finance Handbook. This alignment demonstrates that Genesis’ climate transition strategy addresses material climate-related risks, and is appropriately disclosed and science-based, contributing to the goals of the Paris Agreement.

Takeaways:

• During this Green Bond structuring process as Genesis’ Sole Sustainability Coordinator, we were able to reinforce the importance of the ‘trusted advisor’ partnership with our customers when proposing and executing innovative and market-leading transactions.

• We saw the importance of weekly meetings and detailed actions lists with clear accountabilities to ensure that all required items were delivered on time to ensure smooth and timely execution.

• We also saw the value that our team can deliver to customers in the role of Sustainability Coordinator when reviewing the Terms Sheet, liaising with external legal counsel and external reviewers, and supporting internal dialogue on sustainable finance, particularly at the internal Sustainability Committee and the Board.

• By supporting Genesis with Green Bond investor engagement and were able to develop a deeper insight on how NZ institutional investor’s view NZ’s energy transition away from fossil fuels and how they want NZ issuers to demonstrate this when they come to the NZ Bond market in Green format.

• These actions all supported Genesis to execute a credible sustainable finance transaction that both supported Genesis’ funding and leadership aspirations, while also growing the credibility of the sustainable finance market in New Zealand.

Link with Westpac’s culture and strategy: Sustainability is a core strategic pillar for Westpac. Our role in this transaction provided a broader platform for which we could demonstrate to our internal team and wider stakeholders our commitment to supporting them to play their part in Aotearoa’s climate change transition.

Next steps: Genesis’ Framework positions the company for future sustainable debt issuances (which it has subsequently done) and for sustainability-linked structures in the future (building on its Sustainability-Linked Loan, also structured by Westpac back in October 2021).

This transition will also encourage more corporates to explore the role that sustainable finance could play to help transform their business, align their values with their stakeholders, and make a positive impact on NZ’s carbon footprint and future.

Contact details:

• Joanna Silver, Head of Sustainable Finance, Westpac: Joanna.silver@westpac.co.nz

• Dan Dillane, Group Treasurer, Genesis: Dan.Dillane@genesisenergy.co.nz

Organisation Name: Goodman Property Trust (through its wholly owned subsidiary GMT Bond Issuer Limited) (Goodman).

Case study name: Goodman’s NZ$150m 5 Year Green Bonds (April 2022).

Role of Westpac: Westpac supported Goodman as Arranger, Green Bond Coordinator and Joint Lead Manager (JLM).

Effect: Our role as Arranger, Green Bond Coordinator and JLM enabled Goodman to issue its inaugural NZ$150m 5 year fixed rate, senior secured Green Bond (Green Bond) into the New Zealand market on 14th April 2022. This was one of the first Green Bond issuances by a NZ issuer in the industrial property sector and identified 5 new properties under development to qualify as eligible assets to be constructed between August 2022 and May 2023.

Goodman printed the maximum volume of NZ$150m at the tight-end of the revised indicative issue margin of MS+110bps. Strong initial momentum over the first 48 hour period of the bookbuild enabled Goodman to revise the original margin range 5bps tighter to MS+110-120bps (from MS+115-125bps). The significant increase in underlying rates in the lead up to launching the transaction, as well as through the course of the bookbuild underpinned robust retail demand for the Green Bond. Further tailwinds were provided by the Green Bond format, the lack of rated retail corporate product at the beginning of the year, the tenor and strong BBB+ rating, all of which helped to achieve a high quality and granular book.

Given the challenging long-term outlook at the time, this was an exceptional outcome supported by Goodman’s Sustainable Finance Framework (Framework) and their sustainability strategy which received very constructive feedback from the market.

Internal work with Goodman: We supported Goodman to prepare a Sustainable Finance Framework which was market leading and identify eligible assets to which Green Bond proceeds could be allocated. This Framework was published in March 2022 outlining Goodman’s Sustainability Strategy, the integration of sustainability across all business opportunities and key sustainability targets. The Framework covered both proceeds-based borrowing outlining Goodman’s commitment to invest in sustainable assets, with a limited look back period, and sustainability-linked borrowing incorporating key sustainability performance indicators. Additionally, Westpac researched industry impact reporting to ensure impact reporting metrics included in the Framework were best practice.

We also prepared an Eligible Asset Register for Goodman which outlined how the net proceeds of the Green Bond will be notionally allocated in accordance with the Framework to finance or refinance eligible assets, namely, properties under development or being upgraded that are certified as obtaining, or verified as targeting, a relevant Green Star or NABERSNZ building rating as consistent with the Green Bond Principles.

External work with Goodman: Via an introduction by Westpac, Goodman established a sustainable finance assurance relationship with a third-party assurance provider, Ernst & Young, to provide a Limited Assurance Report on the alignment of the Framework to the Green Bond Principles and verify the assets in the Eligible Asset Register as eligible green assets. Westpac also supported Goodman to prepare its Green Bond Terms Sheet and its Product Disclosure Statement alongside advisors, Russell McVeagh.

To support a successful Green Bond execution, Westpac supported Goodman to prepare an Investor Presentation, and joined investor calls, to highlight the key aspects of the Green Bond offer and the alignment of this offer to the Green Bond Principles.

Partnership and collaboration with Goodman: Westpac always take a strong partnering approach with customers to position them to execute credible, transparent and market-leading sustainable finance transaction. We continued this approach with the Goodman team from the initial meeting right through to the closure of the transaction including a Board presentation and ongoing engagement and support of Goodman to present at local climate change conferences and industry events.

Takeaways:

• During this Green Bond structuring process as Goodman’s Green Bond Coordinator, we were able to reinforce the importance of the ‘trusted advisor’ partnership with our customers when proposing and executing market-leading transactions.

• We saw the value that our team can deliver to customers in the role of Green Bond Coordinator when reviewing the Terms Sheet, liaising with external legal counsel, and supporting internal dialogue on sustainable finance, particularly at the Board level.

• Ensuring strict alignment with local green building standards and globally agreed principles while also supporting Goodman with review of all of its issuance documentation helped to ensure Goodman’s Green Bond was credible, and brand accretive for the company while at the same time, supporting the growth of confidence in the local sustainable finance market in Aotearoa.

Link with Westpac’s culture and strategy: Sustainability is already a core strategic pillar for Westpac. Our role in this transaction provided a broader platform for which we could demonstrate to our internal team and wider stakeholders our commitment to supporting them to play their part in Aotearoa’s climate change transition.

Next steps: Goodman’s sustainable finance commitments in this transaction demonstrated its leadership in the industrial property sector and encourages peers to follow suit. This transaction will also encourage corporates more broadly across ‘NZ Inc’ to explore the role that sustainable finance could play to help transform their business, align their values with their stakeholders, and make a positive impact on NZ’s carbon footprint and future.

Contact details:

Joanna Silver, Head of Sustainable Finance, Westpac: Joanna.silver@westpac.co.nz

Andy Eakin, CFO, Goodman: Andy.Eakin@goodman.com mailto:Dan.Dillane@genesisenergy.co.nz

SETTING GOALS: HAWKE’S BAY ON BOARD TO BECOMING NZ’S MOST SUSTAINABLE AIRPORT.

Hawke's Bay Airport has taken an important step in its ambition to become New Zealand's most sustainable airport, by accessing a $23 million sustainably linked loan from ASB. It's allocated under the Reserve Bank's Funding for Lending (FLP) programme, to support projects that meet sustainability or regional infrastructure criteria.

Sustainability at the heart of everything

As a vital strategic asset for the Hawke's Bay region, the airport aspires to be New Zealand's most vibrant and successful regional airport.

Hawke's Bay Airport CEO Rob Stratford says, 'being ASB's first Sustainable Linked Loan partner reflects confidence in our banking partner and our overall vision and strategic plan. The fact is, getting to this point indicates a high degree of rigour and verification as well as confidence in our commitment to sustainable outcomes'.

Nigel Annett, ASB's executive general manager for Corporate Banking, agrees. 'We're delighted to partner with Hawke's Bay Airport in our first Sustainability Linked Loan to support them as they work towards a more sustainable, resilient 'low carbon' future while also focusing on regional growth.'

The airport demonstrates its commitment with various initiatives, including switching to 100% renewable and CarboNZero-certified electricity, using electric and hybrid vehicles, adding a Bikeport to connect to cycleways, and working with Biodiversity Hawke's Bay to improve wildlife habitats across the region.

The benefit of sustainable loans

Sustainability Linked Loans (SLLs) require the borrower to commit to key environmental, social and, governance (ESG) targets, with borrowing costs adjusted based on their performance against these targets.

There are three main benefits:

• The loan rates can be lower than other banking products.

• Improving sustainability aligns with the government carbon zero target by 2050.

• It provides an incentive to accelerate what all businesses will need to address eventually and puts in place ESG structures, processes and outcomes that are independently certified.

Recent awards

The success of Hawke's Bay Airport's vision was recognised at the 2022 NZ Airports , winning the Medium Airport of the Year, Sustainability Initiative and Airport Community Engagement awards. The breadth and depth of the airport's decarbonisation and sustainability plans, biodiversity, and involvement of all stakeholders, including local iwi, was seen as an exemplar in the industry.

Setting targets

To remain eligible for the SLL loan, conditions are set to demonstrate the year-on-year reduction in carbon emissions, as well as working with tenants, partners and stakeholders to collect emissions data including electricity usage, waste to landfill and use of fossil fuels.

The airport will be rewarded or penalised with lower or higher borrowing costs, depending on whether it hits its targets.

Rob says the business is working on numerous carbon and waste reduction initiatives, including a pledge to reach net zero emissions by 2030 and progressing the next steps of a major solar farm by the runway. Partnering with ASB to access FLP funds allows the airport to continue its ambitious programme of sustainability work, which is critical to its future success. 'It's vital that Hawke's Bay Airport continues on its drive towards sustainability leadership, a focus that is intrinsic to our businesses success moving forward,' says Stratford.

More than 330 airports worldwide are actively addressing carbon emissions in the Airport Carbon Accreditation programme, including London's Heathrow and Gatwick airports and Amsterdam's Schiphol Airport. It includes six levels: mapping, reduction, optimisation, neutrality, transformation and transition.

Contact details: James Paterson, Head of Sustainable Finance, ASB, james.paterson@asb.co.nz

Customer: Kathmandu

Instrument: Sustainability-linked multi-currency revolving facilities

Counterparty: ANZ (Lead Arranger and Sustainability Coordinator)

Amount: US$ 310 million

Date: 16 May 2023

Term: 3.5-year

Coupon rate: -

Key contact: Frances Blundell, Chief Legal & ESG Officer, E: Frances.Blundell@kmdbrands.com

Customer criteria/requirements:

KMD Brands Limited was looking to refinance its existing debt facilities while building on its previous sustainability linked loan with revised targets that incorporate a pricing mechanism that incentivises ongoing improvement in achieving the Group’s key environmental, social and governance (ESG) objectives. The sustainability aspect of the new facility is underpinned by material metrics and targets of the Group such as reducing greenhouse gas emissions, continued B Corp certification, and improving transparency within its supply chain, including around the wellbeing and labour conditions of workers, and environmental metrics.

The sustainability linked KPIs are unique to KMD Brands, built on the original targets set in 2021 and are fully aligned to the Group’s continued commitment to its ESG goals. In the conversion of the debt facilities to sustainability linked loans, the Group has successfully converted its guarantee facilities to be incorporated under the structure. The facilities are fully aligned with the APLMA Sustainability-Linked Loan Principles (February 2023), and the structure was externally reviewed by an independent third party.

SUSTAINABLE LENDING FOR INSTITUTIONAL CUSTOMERS

ANZ NZ Institutional wrote 22 sustainable finance deals in FY22, totalling more than NZD$10 billion towards sustainability.

This includes:

New Zealand inaugural Sovereign Green Bond

On 15 November, The Treasury announced the issuance of an NZ$3b of nominal green 15 May 2034 New Zealand Government Bond by syndication. ANZ NZ acted as a Joint Lead Manager.

Contact details: Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

SUSTAINABLE LENDING FOR INSTITUTIONAL CUSTOMERS

ANZ NZ Institutional wrote 22 sustainable finance deals in FY22, totalling more than NZD$10 billion towards sustainability.

This includes:

NZ$500m sustainability-linked loan for Oceania Healthcare Limited

ANZ NZ worked with Oceania to implement a $500m five-year debt-facility, its first sustainability-linked loan, with over two-thirds of Oceania’s debt funding now tied to environmental and social sustainability goals.

The funding will go towards delivering Oceania’s business growth strategy, enhancing the resident experience and people capability.

The inclusion of a measurement of care residents’ wellbeing was an important development for the sector.

Contact details: Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

Background:

In September 2017 the Genesis Youth Trust started providing a new set of services to reduce reoffending amongst young people in South Auckland, funded through the Reducing Youth Reoffending in South Auckland Social Impact Bond (the Bond). The Bond was a pilot for novel social service contracting approach- es that linked payments by the Government to actual measured achievement of better outcomes- a Social Impact Bond (SIB), a Pay for Results type of contract.

Six years later service delivery under the bond has been completed, with 607 young people (rangatahi) and their families (whānau) impacted directly by this contract. This report evaluates the impact of the bond against its initial dual aims: delivering better outcomes and driving innovation in service delivery and contracting. It also reviews performance and lessons within the wider context of outcome contracting and impact investing across NZ and globally. It looks both in careful detail at what was intended in this New Zealand SIB and what was achieved, while also identifying insights and lessons that have wider application for other outcome oriented social impact investments.

Overview:

The Reducing Youth Reoffending in South Auckland Social Impact Bond (the Bond) is now completed. This evaluation indicates that it clearly delivered even better outcomes than were set for it six years ago, returning a lifetime social value of around $12 for every dollar of cost. It achieved its goals for reductions in reoffending as well as improved outcomes across several other areas of wellbeing, it developed several potentially enduring innovations that lifted its service delivery, and it has highlighted a series of important lessons for developing better outcome-focused contracting in the future.

At the same time, it has also clearly demonstrated that these successes, while necessary preconditions, are not sufficient to guarantee that those lessons will be applied across other social sector providers and services. Crucially there are changes government agencies need to make to support an innovative and outcomes-orientated system.

ANZ acted as sole Arranger and lead manager for the issue.

Further details:

• Issue date: September 2017

• Maturity: 31 August 2023

• Size: NZ$ 6million

• Intervention: Reduction in youth reoffending in South Auckland

Contact details:

Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

SUSTAINABLE LENDING FOR INSTITUTIONAL CUSTOMERS

ANZ NZ Institutional wrote 22 sustainable finance deals in FY22, totalling more than NZD$10 billion towards sustainability.

This includes:

NZ$320m sustainably-linked working capital financing for Silver Fern Farms

Silver Fern Farms Limited announced the establishment of one of New Zealand’s largest syndicated sustainability-linked working capital financing facilities.

The facilities refinanced the existing NZ$320m working capital financing, announced in June 2022, and are linked to Silver Fern Farms achieving certain sustainability performance targets.

If the targets are achieved they are rewarded with a lower interest rate and if targets are missed Silver Fern Farms will pay a higher interest rate.

ANZ acted as Sole Mandated Lead Arranger and Bookrunner and Joint Sustainability Coordinator.

Contact details: Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

SUSTAINABLE LENDING FOR INSTITUTIONAL CUSTOMERS

ANZ NZ Institutional wrote 22 sustainable finance deals in FY22, totalling more than NZD$10 billion towards sustainability.

This includes:

NZ’s first Sustainability Linked Bond for Spark Finance:

Spark Finance Limited completed a 6.5-year NZ$100m sustainability-linked bond (SLB) for institutional investors, the first of its kind in the New Zealand market.

For its SLB, Spark has selected one timebound sustainability performance target (SPT) to reduce absolute Scope 1 and Scope 2 Greenhouse Gas emissions. The SLB includes a financial impact that is dependent on the achievement of the SPT as at 30 June 2026. Should Spark fail to meet its emissions reduction target, a premium pricing adjustment in the form of an interest rate step will occur and will apply until maturity.

ANZ acted as sole Arranger and Sustainability Coordinator for this transaction.

Contact details: Dean Spicer, Head of Sustainable Finance, ANZ NZ, dean.spicer@anz.com

BNZ continues to support its corporate customers to raise capital in the domestic Green Bond markets. BNZ was the only New Zealand bank to be mandated as a Joint Structuring Advisor in relation to the establishment of the New Zealand Sovereign Green Bond Programme. The inaugural Green Bond was issued under this framework on 22nd November 2022 and BNZ acted as a Joint Lead Manager on the transaction.

We were also Joint lead manager and Green Programme Coordinator on Contact Energy Limited’s Green Capital Bond deal, supporting funding of renewable power generation assets in New Zealand. This deal won the INFINZ New Zealand Debt Market Issue of the Year in 2022.

Contact details: Adam Coxhead, Head of Sustainable Finance - Corporate & Institutional Banking, BNZ: Adam_Coxhead@bnz.co.nz; and Alex West, Head of Sustainable Finance – Partnership Banking, BNZ: Alex_West@bnz.co.nz

BNZ executed the first Sustainability Linked Derivative (SLD) in the New Zealand market with retirement village and aged care provider Metlifecare. The deal ties the cost of Metlifecare’s interest rate hedging to its performance against ambitious environmental and social targets and is an example of how BNZ can work with customers to incorporate sustainability objectives into every aspect of their financing, further incentivising more sustainable business practices.

Contact details: Adam Coxhead, Head of Sustainable Finance - Corporate & Institutional Banking, BNZ: Adam_Coxhead@bnz.co.nz; and Alex West, Head of Sustainable Finance – Partnership Banking, BNZ: Alex_West@bnz.co.nz

Customer: Taranaki Offshore Wind Partnership

Instrument: Investment in sustainable transition

Counterparty:

• Taranaki Offshore Partnership is a joint venture between Copenhagen Infrastructure Partners and NZ Super Fund.

• Copenhagen Infrastructure Partners and its development arm, Copenhagen Offshore Partners, has a portfolio of 12 operational, under construction and in-development offshore wind projects in North America, Europe, Asia and Australia, cumulatively representing total capacity of ~30 GW.

Amount: Feasibility stage

Customer criteria/requirements:

• The Taranaki Offshore Wind Partnership has been established to assess the feasibility of an offshore wind farm that would produce up to 1GW of electricity, off the South Taranaki coast. In June 2023, the first piece of physical offshore wind technology was deployed, a Floating Light Detecting and Ranging device (FLiDAR). The international FLiDAR specialists brought to New Zealand to deploy the device trained a local crew in Taranaki to operate and maintain that equipment for the year.

• As well as delivering renewable energy at scale, the development of an offshore wind industry in Taranaki would also create new opportunities for skilled workers, smoothing the region’s transition away from emissions intensive industries. The partnership is also working with the Government on the development of regulatory settings for offshore wind development.