New Zealand's Contact Energy certifies debt instruments as green

Contact Energy Ltd (NZE:CEN), an electricity and gas provider of New Zealand, on Monday unveiled a green borrowing programme, described as a first for a New Zealand corporation.

The programme encompasses a funding portfolio of over NZD 1.8 billion (USD 1.3bn/EUR 1.1bn) across a range of debt instruments. All of the company's committed bank facilities, commercial paper and retail bonds, as well as its USPP and wholesale bonds maturing after 2018 are certified under the programme, meaning the current lenders and investors in these debt instruments now hold certified green debt Instruments.

The first new transaction under the programme is a NZD-75-million bank facility with Australia and New Zealand Banking Group (ASX:ANZ).

Contact, which generates 80% of its electricity from renewable sources, said it will use the proceeds of the programme to finance existing and future renewable generation assets.

Its green borrowing programme framework has been developed in line with the Green Bond Principles and is certified by the Climate Bonds Initiative (CBI). All of the company's geothermal assets, excluding Ohaaki power station, qualify to be included as eligible green assets, while its hydropower stations could not be included yet as CBI is still to release hydropower criteria.

Contact's head of capital markets and tax, Louise Tong said that the programme "plays an important role in developing opportunities for lenders and investors globally who are seeking certified green investments in New Zealand."

(NZD 1 = USD 0.725/EUR 0.616)

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