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Chapman Tripp is pleased to have advised Te Tai Ōhanga – The Treasury on New Zealand’s first sovereign green bonds and development of the New Zealand Sovereign Green Bond Framework.
The nominal green New Zealand Government Bonds due 15 May 2034 are the first to be issued under the New Zealand Sovereign Green Bond Framework published earlier this year in September.
The bonds priced yesterday at an interest rate of 4.25%, reflecting a yield to maturity of 4.355%. Under the Framework money raised is to be allocated towards the Government’s eligible climate and environmental expenditures.
The offer size was capped at NZ$3 billion but investor interest exceeded NZ$7.5 billion. Partner Luke Ford said, “We see this issuance further bolstering the New Zealand sustainable bond market development, while expanding the investor base for New Zealand Government Bonds”.
“We’ve seen increased awareness of the role impact investing can play in supporting social and environmental change. Green bonds enable investors to support projects that address climate change and promote positive outcomes for natural and built environments.”
As discussed in Chapman Tripp’s May 2022 publication Investing for impact: Sustainable finance in New Zealand, sovereign green bonds provide benchmark pricing and liquidity while further encouraging local issuers to enter the market, making New Zealand a more intriguing prospect for international sustainable finance investors.
The team at Chapman Tripp was led by sustainable finance partner Luke Ford and also included Alan Lester, Jessica Elder and Paige Thomas. Climate change experts Nicola Swan and Alana Lampitt provided additional assistance with the Framework.
ANZ, BNZ, Deutsche Bank, UBS and Westpac New Zealand were joint lead managers on the green bond offer. BNZ and Deutsche Bank were the joint structuring advisers for the green bond programme.