Powerco secures first Climate Bonds Initiative-certified green loan
Powerco has secured its first green loan under the Climate Bonds Initiative (CBI).
Powerco is the first EDB in the country to execute a CBI-certified green loan under the scheme’s ‘Electrical Grids and Storage’ criteria.
The CBI is a voluntary scheme for businesses wanting access to sustainability-linked bonds, loans and other debt instruments.
To achieve certification, Powerco established its Green Finance Framework and demonstrated alignment with rigorous climate mitigation, adaptation and resilience criteria.
This required Powerco to evidence how it actively manages its electricity assets to minimise environmental impact and ensure resilience to climate change throughout the asset lifecycle; from planning, construction and operations, right through to decommissioning.
Powerco will need to show that it’s continuing to meet the criteria via annual re-certification.
Moving forward the Framework will be used to support future debt financing, allowing the business to raise more green loans and bonds.
Establishing the Framework is part of Powerco’s wider sustainability journey and commitment to enabling the sustainable energy transition. It follows their 100/100 GRESB score in October 2023, the international survey that sets the global standard for ESG benchmarking.
Powerco CEO James Kilty says he’s pleased with the certification.
“Aotearoa needs considerable investment to electrify as part of the sustainable energy transition and to ensure networks are resilient to climate change. Being able to evidence our genuine commitment to reducing our climate impact in order to unlock green finance to make that happen for the Kiwis we serve is a win-win,” he says.
“We’re ambitious to see Aotearoa grow as we transition, and to make that happen we need foreign capital to invest in our networks so we can enable, not inhibit, economic growth.”
ANZ Bank New Zealand Limited (ANZ) was appointed as sole Sustainability Coordinator for the development of the Green Finance Framework and first green loan.
Caroline Poujol, Director Sustainable Finance at ANZ said “We congratulate Powerco on the establishment of its CBI-certified programme. We hope it will contribute to the further decarbonisation and electrification of the national grid. We are delighted to have been able to work with Powerco on this establishment, as it aligns with our purpose of supporting Aotearoa New Zealand’s transition to a low-emissions, climate-resilient economy. We also thank all parties involved.”
First green certified loan now signed
With programmatic CBI certification in place Powerco has now secured its first green certified loan.
The $300m, seven-year loan has been financed by institutions locally and abroad.
Powerco Chief Financial Officer Chris Taylor says there was no shortage of interest in the loan.
“We intended to raise $175m but oversubscription was so high that it closed at $300m,” he says.
“That’s a testament to our strong investor relationships, and market confidence in our business and our team. Opting for a seven-year, rather than a three or five-year term is unique but again, I think it just shows how attractive a green loan is.”
James Kilty agrees.
“It’s heartening to see that sustainability is important not just to us, but to our investors and shareholders. There’s been huge interest from new investors because they can see us doing the right thing.”
Powerco anticipates executing three more green certified loans by the end of the year. Email treasury@powerco.co.nz to find out more.
Powerco is the first EDB in the country to execute a CBI-certified green loan under the scheme’s ‘Electrical Grids and Storage’ criteria.
The CBI is a voluntary scheme for businesses wanting access to sustainability-linked bonds, loans and other debt instruments.
To achieve certification, Powerco established its Green Finance Framework and demonstrated alignment with rigorous climate mitigation, adaptation and resilience criteria.
This required Powerco to evidence how it actively manages its electricity assets to minimise environmental impact and ensure resilience to climate change throughout the asset lifecycle; from planning, construction and operations, right through to decommissioning.
Powerco will need to show that it’s continuing to meet the criteria via annual re-certification.
Moving forward the Framework will be used to support future debt financing, allowing the business to raise more green loans and bonds.
Establishing the Framework is part of Powerco’s wider sustainability journey and commitment to enabling the sustainable energy transition. It follows their 100/100 GRESB score in October 2023, the international survey that sets the global standard for ESG benchmarking.
Powerco CEO James Kilty says he’s pleased with the certification.
“Aotearoa needs considerable investment to electrify as part of the sustainable energy transition and to ensure networks are resilient to climate change. Being able to evidence our genuine commitment to reducing our climate impact in order to unlock green finance to make that happen for the Kiwis we serve is a win-win,” he says.
“We’re ambitious to see Aotearoa grow as we transition, and to make that happen we need foreign capital to invest in our networks so we can enable, not inhibit, economic growth.”
ANZ Bank New Zealand Limited (ANZ) was appointed as sole Sustainability Coordinator for the development of the Green Finance Framework and first green loan.
Caroline Poujol, Director Sustainable Finance at ANZ said “We congratulate Powerco on the establishment of its CBI-certified programme. We hope it will contribute to the further decarbonisation and electrification of the national grid. We are delighted to have been able to work with Powerco on this establishment, as it aligns with our purpose of supporting Aotearoa New Zealand’s transition to a low-emissions, climate-resilient economy. We also thank all parties involved.”
First green certified loan now signed
With programmatic CBI certification in place Powerco has now secured its first green certified loan.
The $300m, seven-year loan has been financed by institutions locally and abroad.
Powerco Chief Financial Officer Chris Taylor says there was no shortage of interest in the loan.
“We intended to raise $175m but oversubscription was so high that it closed at $300m,” he says.
“That’s a testament to our strong investor relationships, and market confidence in our business and our team. Opting for a seven-year, rather than a three or five-year term is unique but again, I think it just shows how attractive a green loan is.”
James Kilty agrees.
“It’s heartening to see that sustainability is important not just to us, but to our investors and shareholders. There’s been huge interest from new investors because they can see us doing the right thing.”
Powerco anticipates executing three more green certified loans by the end of the year. Email treasury@powerco.co.nz to find out more.
Copy link
