$500m ANZ Green Bond project wins industry award

ANZ has been recognised for its industry-leading work with Auckland Council in sustainable finance at this year’s INFINZ Awards.

Auckland Council’s $500m 30-year fixed rate green bond issue won the New Zealand Debt Market Issue of the Year award. ANZ New Zealand was Joint Lead Manager and sole Green Bond Co-ordinator for the issuance.

ANZ has partnered with Auckland Council to support their efforts to develop the New Zealand Green Bond market, acting as a Green Bond coordinator on each of the Council’s three green bond issues since 2018.

"It’s wonderful to see ANZ’s Debt Capital Markets and Sustainable Finance teams recognised for their outstanding work."

- ANZ NZ Managing Director, Institutional, Stuart McKinnon

The issuance in September 2020 was the first 30 year senior bond issue by any New Zealand issuer and also the largest green bond issued in New Zealand to date.

“As green bond co-ordinator, ANZ worked closely with Auckland Council to establish their green bond framework, prior to their debut green bond issuance” said Mr McKinnon.

The bond is the longest dated bond in the NZ market and required innovation in the execution of the transaction due to the challenge for the issuer and investors to manage the risk.

The issue attracted offshore investor demand, raising the profile of the New Zealand capital markets. Strong investor appetite saw the issue fully placed within 24 hours.

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;

·         First New Zealand corporate green bond for Argosy Property in February 2019;

·         Mercury NZ’s debut Green bond issue; and

·         New Zealand’s first Sustainable Linked Loan with Synlait Milk in September 2019.

These innovations have been important steps in the development of the market and have created significant momentum building into 2021.

It was a successful night for ANZ at the INFINZ awards, with the bank also winning the Excellence in Institutional Banking award for its View Bills service.