Powerco has secured its first $300 million green loan, certified by the Climate Bonds Initiative (CBI), making it the first Electricity Distribution Business (EDB) in New Zealand to receive such a certification under the ‘Electrical Grids and Storage’ criteria.
The green loan, initially aimed at $175 million, due to the high demand, closed at $300 million. Powerco’s CFO, Chris Taylor, highlighted the unique appeal of the seven-year loan term and the robust investor relationships that contributed to the successful funding round.
Powerco developed a comprehensive Green Finance Framework, to secure the CBI certification, demonstrating its commitment to rigorous climate mitigation, adaptation, and resilience practices. This framework ensures ongoing management of Powerco’s electricity assets to minimise environmental impact and enhance resilience against climate change throughout their lifecycle—from planning and construction to operations and eventual decommissioning. Powerco will need to show that it’s continuing to meet the criteria via annual re-certification.
ANZ Bank New Zealand Limited was appointed as Sustainability Coordinator for developing this framework. Caroline Poujol, Director Sustainable Finance at ANZ congratulated Powerco and said, “We hope it will contribute to the further decarbonisation and electrification of the national grid, as it aligns with our purpose of supporting Aotearoa New Zealand’s transition to a low-emissions, climate-resilient economy.”
Looking ahead, Powerco plans to use the framework to support further green debt financing, aiming to execute three more green-certified loans by the end of the year.