ANZ supports NZ's largest-ever sustainable re-financing worth NZ$1.25 billion
Metlifecare has completed a refinancing of the company’s bank loan facilities into Sustainability-Linked Loan facilities tied to ambitious social and environmental goals.
The NZ$1.25 billion Sustainability-Linked Loan comprises NZ$600m of existing debt and $650m new debt, and makes Metlifecare the first operator in the New Zealand and Australian retirement village and aged care sector to be fully funded by sustainable financing, demonstrating its commitment to being a transformative industry leader.
Dean Spicer, ANZ New Zealand’s Head of Sustainable Finance, said ANZ was proud to have partnered with Metlifecare on the transaction.
“New Zealand’s ageing population and growing demand for specialist dementia care highlight the important role the Retirement Village sector plays in delivering on both the critical social care needed and building quality villages with a lower environmental impact.
“The financing supports the important initiatives undertaken by Metlifecare towards addressing social and environmental challenges,” Mr Spicer said.
“This is also recognition of the role non-government organisations play in providing frameworks that, in turn, help other businesses strive for ambitious social and environmental commitments.”
ANZ New Zealand and Westpac NZ were Joint Mandated Lead Arrangers and Bookrunners, and Joint Sustainability Coordinators to Metlifecare in preparing the Sustainability-Linked Loan, with significant support from both existing and new lenders.
Metlifecare’s Sustainability-Linked Loan sets ambitious annual performance targets for three material sustainability KPIs, which will be independently verified each year. The KPIs are:
- Joining the Science Based Targets Initiative (SBTi) to establish a decarbonisation target in line with the goal of limiting global warming to 1.5 oC, and annual reductions in greenhouse gas emissions to achieve that target.
- Building six new aged care facilities which achieve a 6 Green Star rating from the New Zealand Green Building Council (which is the highest level of green building rating achievable in New Zealand) within five years. There are currently only ten 6 Green Star rated buildings in New Zealand, and none are within the retirement village and aged care industry.
- Increasing the amount of dementia care beds in Metlifecare’s portfolio six-fold within five years, and make all of Metlifecare’s portfolio dementia friendly as accredited by Alzheimers New Zealand.
Metlifecare will pay a lower interest rate on the loan for achieving its targets, but will have to pay higher interest if it falls short of satisfying the KPIs.
Earl Gasparich, CEO of Metlifecare, said that the Sustainability-Linked Loan recognised that Metlifecare was a purpose-driven business with sustainability objectives meaningful to the company, as well as to New Zealand.
“Metlifecare’s sustainability targets are focused on areas that are of critical importance not only to New Zealand, but also to our staff and residents. We know they care deeply about the environment and protecting New Zealand’s future and to deliver on this, we commit to greenhouse gas emissions reductions through a Science-Based Target aligned to limit global warming to 1.5 oC.
“Likewise, this Loan encourages Metlifecare to continue to increase the amount of care provided in our portfolio, helping us to alleviate the shortage in New Zealand. It incentivises us to build these future care offerings to the highest level of green building rating possible in New Zealand.
“We also know that dementia is an area that is of increasing concern, and this loan incentivises Metlifecare to not only increase the level of specialised dementia care within Metlifecare facilities, but also ensure that all of Metlifecare’s current and future villages are independently accredited by Alzheimers New Zealand as being dementia friendly communities for all of our residents.”
About the SBTi
The Science Based Targets initiative (SBTi) is a global partnership that provides a clearly defined path to reduce emissions in line with the Paris Agreement goals. The SBTi independently assesses and approves companies’ emissions reductions targets in line with strict criteria. As at December 2021, 13 companies in New Zealand have set science-based emission reduction targets that have been validated by the SBTi and disclosed on the SBTi website.
ANZ acknowledges the following parties for the roles they play in providing important supporting services for this transaction; the New Zealand Green Building Council, behind the Green Star rating system for real estate, Alzheimers New Zealand, behind the Dementia Friendly programme, and the Science-Based Targets initiative, behind the global methodology to set emissions reduction targets in line with science.
For media enquiries, please contact:
Metlifecare - Anna Murdoch 0275289509
ANZ – Briar McCormack 021 2801173