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We were pleased to assist a new international sustainable bond issuer to enter the New Zealand Kauri Bond market.
AAA/Aaa-rated Nederlandse Waterschapsbank (NWB Bank) is the largest issuer of sustainable bonds in the Netherlands. Internationally, the bank is considered a leading issuer of ESG bonds within the SSA (Sovereigns, Supranationals, and Agencies) space. The NZ$250 million five year 3.125% SDG Housing Bonds were issued this week and will be used to finance affordable and sustainable housing in the Netherlands.
The Chapman Tripp finance team advising NWB Bank was led by partner Luke Ford and comprised solicitors Tom van Schaik and Ben Gatting, with partner Bevan Miles and solicitor Alexandra Bensemann providing tax advice.
NWB Bank is the first new Kauri Bond issuer since Asian Infrastructure Investment Bank (AIIB) in May last year. Chapman Tripp also advised AIIB.
“We are very happy to have issued our first Kauri Bond under the program we have set up some time ago, especially since the bonds were placed with onshore investors in New Zealand. We hope this will be the first bond of many in the New Zealand market” says Tom Meuwissen, responsible for investor relations at NWB Bank.
“Thanks to the lead managers, we were able to organise an online roadshow where we could showcase our sustainability bond framework, which is of key importance for our institution” adds Meuwissen. ANZ, BNZ and TD were lead managers on the transaction.
NWB Bank set up its framework for ‘Affordable Housing Bonds’ in 2017. This was rebranded to ‘SDG Housing Bonds’ in 2019 to signal the transition from a social bond to a sustainable bond – and providing financing for organisations that demonstrate environmental goals as well as social goals.
This is NWB Bank’s first New Zealand bond offer and we hope the experience will encourage them to come here again. We are excited to see NWB Bank bring its experience and commitment as a sustainability bond issuer to the Kauri Bond market.Luke Ford, Partner