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Chapman Tripp acted as sole legal counsel on two ground-breaking sustainable bond issuances this week – the first new green bond for Precinct Properties and the first sustainable development Kauri bond for AAA/AAA/Aaa-rated Asian Infrastructure Investment Bank (AIIB).
Finance partner Luke Ford and solicitor Tom van Schaik acted on both transactions.
Chapman Tripp is a market leader in the sustainable and green bond market, having advised on every new sustainable bond offer made by New Zealand issuers this year and over NZ$2b of sustainable bonds in 2020.
Precinct Properties’ offer of NZ$150m six year green bonds was made under its Sustainable Debt Framework, launched in November 2020 and targeted at buildings obtaining a minimum 5-star New Zealand Green Building Council rating or 4-star NABERSNZ rating.
The green bonds were issued today with an interest rate of 2.85% per annum – reflecting a margin of 1.45% over the underlying swap rate, which is the lowest margin for any unrated issuer on NZX since Precinct Properties’ 2014 bond issuance.
ANZ was arranger and green bond coordinator with ANZ, BNZ, Forsyth Barr and Jarden as joint lead managers.
AIIB’s issuance on Monday of NZ$250m ca. two year 0.5% bonds marked its first sustainable development bonds in the Kauri market. Chapman Tripp assisted as New Zealand counsel on both the Kauri bond issue and the establishment of AIIB’s Australian and New Zealand currency Debt Issuance Programme in January this year.
AIIB’s Sustainable Development Bond Framework launched in April applied to this issuance of Kauri bonds.
Westpac New Zealand was the lead manager on AIIB’s sustainable development Kauri bond.