Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IFC Launches First Green Kauri Bond in NZ Dolllars

IFC Launches First Green Kauri Bond in New Zealand Dollars to Support Climate-Smart Investments

Auckland, New Zealand, July 27, 2017—IFC, a member of the World Bank Group, today successfully launched a minimum 100 million New Zealand dollar Green Kauri bond -the equivalent of approximately $75 million – to finance private sector investments addressing climate change in emerging markets. This is the first time that a green bond has been launched in New Zealand.

IFC was one of the earliest issuers of green bonds — launching its first bond in 2008 — to help catalyze the market and unlock investment potential for private sector projects that support renewable energy and energy efficiency globally.

“This issuance demonstrates the continued and expanding role of capital markets in mobilizing international savings to help close the climate finance gap,” said IFC Director for Treasury Market Operations Monish Mahurkar. He added, “As of July 2017, IFC has issued approximately $6 billion in green bonds, including two benchmark $1 billion issuances — the largest in the market at that time.”

IFC has been a pioneer in the green bond market, issuing a 500 million offshore Renminbi-denominated green bond — the first such issuance — in London in 2014 and issuing the first green offshore Rupee-denominated bond in 2015. IFC also established in 2014 a retail bond program which focuses on providing US retail investors access to IFC green bonds.

The 10-year fixed rate bond will be issued under IFC’s Global Medium-Term Note program. IFC has issued Kauri bonds for over two decades, worth more than 5 billion New Zealand dollars, in a range of tenors — attracting both domestic and international investors. BNZ is acting as arranger and ANZ Bank and BNZ are acting as joint lead managers on the bond.

“BNZ and the whole NAB group are extremely proud to work with IFC in bringing the first green bond to the New Zealand market. This bond is a critical step in opening up green and sustainable investing opportunities in NZ dollars, and we thank IFC for its continued commitment to the New Zealand market and its development,” said BNZ Head of Debt Capital Markets, Mike Faville. “Fostering the green, social and sustainable market has been a key focus of BNZ and NAB for a long time, and it’s great to see the first issue launched. For it to be done by an issuer with the standing of IFC, with its long commitment to green bonds, makes it an even stronger way to seed the NZ market. There is a growing awareness of environmental and social issues among local investors, and we hope this transaction helps pave the way for more issuers to move along this path.”

ANZ Bank’s Head of Capital Markets New Zealand Dean Spicer added, “We are thrilled that the undeniable momentum of the green bond market has finally extended to the Kauri market. ANZ is delighted to support IFC's green bond transaction that will help further develop the Kauri market. IFC’s lead opens a new door of opportunities for both issuers and investors in NZD bonds.”

In IFC’s fiscal year 2016, the new projects financed by IFC’s green bonds contributed to approximately 1 million MWh in annual renewable energy generation, sufficient to supply electricity to approximately 74,000 US households for a year.

IFC will use the proceeds to support investments in renewable energy, energy efficiency, and other areas that reduce greenhouse emissions. The funding raised from IFC green bonds are allocated within IFC in a separate account and the inclusion criteria for eligible investments are independently verified by the Center for International Climate and Environmental Research-Oslo (CICERO).

IFC Kauri Green Bonds Terms

Issuer: International Finance Corporation (IFC)
Amount: Minimum 100 million New Zealand dollars
Settlement date: August 9, 2017
Maturity date: August 9, 2027
Mandated arranger: BNZ
Mandated joint lead managers: ANZ, BNZ


ENDS


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Transport: International Arrivals In May Lowest In 61 Years

The number of people that arrived in New Zealand in May 2020 was the lowest for any month since May 1959, because of COVID-19-related border and travel restrictions, Stats NZ said today. There were 5,600 arrivals in May 2020 compared with 4,700 in ... More>>

ALSO:

It’s All In The Genomes: New Study Reveals Scale Of Havelock North Campylobacteriosis Outbreak

When the campylobacteria outbreak hit Havelock North in 2016, no-one fully understood how widely it affected the local communities. Gene-sequencing technology used by scientists has shown the true scale of the outbreak. The joint study from ESR, Massey ... More>>

ALSO:

Tiwai Point: Rio Tinto Announces Plans To Close Tiwai Point Smelter

Rio Tinto has just announced that it will wind down New Zealand Aluminium Smelters - the Tiwai Point smelter - saying the business is no longer viable. More>>

ALSO:

Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>

ALSO:

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:


ASB: Regional Economic Scoreboard Q1 2020

ASB NZ Regional Economic Scoreboard Gisborne still the place to be It has been Gisborne’s year, and the region comes out tops on our regional rankings for the fourth successive quarter. Like everywhere, question marks are about the COVID-19 impact on the future. ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO:

NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>

ALSO:

Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>

ALSO:

Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO: