AUCKLAND, NEW ZEALAND: Mercury NZ Limited has issued its inaugural green bond in the Australian debt market, securing A$200m of funding.
The A$200m 7-year bond was documented as an ICMA GBP-aligned / CBI certified green bond. The proceeds from this issue are earmarked to finance or refinance new and existing projects and expenditures relating to renewable energy as outlined in Mercury’s Green Financing Framework.
“We see sustainable financing as an important means of supporting New Zealand’s decarbonisation goals. Over the last 18 months Mercury has raised more than $750m through green bonds issued domestically and now abroad, with these funds supporting our contribution to New Zealand’s lower carbon future,” said Mercury’s Chief Financial Officer, William Meek.
“The green bond is the first of its kind issued by a New Zealand corporate in an offshore market, offering a unique opportunity for investors to support renewable generation assets not readily available in the Australian market,” said Mr Meek.
“With New Zealand’s electricity system already at 80% renewable compared with Australia’s 25%, the entire sector is in a great position to market its renewable credentials to the Australian market, and ultimately support continued green growth back home.”
Westpac Banking Corporation acted as Arranger, with MUFG Securities Asia Limited and Westpac Joint Lead Managers for the green bond issue.