ANZ welcomes the announcement that the New Zealand Government is planning to issue sovereign green bonds from next year to help raise funds for New Zealand’s low carbon transition.
Stuart McKinnon, Managing Director ANZ Institutional Banking, said following the United Nations Climate Change Conference (COP26) the move was significant.
“Globally it is estimated the cost of halting global warming and reducing net carbon emissions to zero is $50 trillion. This will require a huge shift in the allocation of capital to meet our climate transition goals.
“The announcement today aligns Aotearoa New Zealand’s ambition to deliver the low carbon projects needed to meet our climate targets with the Government’s debt programme,” Mr McKinnon said.
Green bonds have been the most common method of raising money in the green finance world, financing projects such as renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change.
ANZ has been a pioneer in the New Zealand green bond market, jointly leading the first green bond for the International Finance Corporation (a member of the World Bank Group) in July 2017.
The bank has since partnered to deliver a number of key transactions including:
- First domestic green bond issue for Auckland Council in June 2018 - $200 million;
- First New Zealand corporate green bond for Argosy Property in February 2019 - $100 million;
- Mercury NZ’s debut Green bond issue in September 2020 - $200 million; and
- New Zealand’s first Sustainable Linked Loan with Synlait Milk in September 2019 $50 million.
“These innovations have been important steps in the development of the market and have created significant momentum building into 2021,” Mr McKinnon said.
“Our ambition at ANZ is to grow our portfolio of high quality green bonds as part of our commitment to supporting the transition to a low carbon future.”
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