The firm continues to champion the development of markets for low-carbon finance in New Zealand
Chapman Tripp has assisted with an investment that supports the decarbonisation of Wellington’s CentrePort. With its involvement in the investment, the firm continues to play a part in developing markets for low-carbon finance in New Zealand.
The firm advised green investment bank New Zealand Green Investment Finance (NZGIF) on its application of its $100m investment capital towards the effort. The bank is mandated to invest in businesses and projects aimed towards reducing greenhouse gas emissions in the country.
As a result of the deal, CentrePort can implement low-carbon initiatives, purchase electric vehicles, construct on-site renewable energy generation and improve energy efficiency through a $15m green credit facility.
“We are very pleased to be active in the market. As we build a portfolio of diverse investments, we are conscious of our long-term mission to put funds to work in a way that draws other market participants. This initial investment is the first of many building blocks which will help the market to understand and invest with us in a low carbon future,” NZGIF chief executive Craig Weise said.
Chapman Tripp said that the bank’s investment was in line with its “focus on transport, buildings, industrial processes, distributed energy and agriculture.” It is also “the first investment in a series planned for 2020 and beyond.”
“With a broad and flexible mandate, NZGIF has committed to invest via a range of capital structures, from debt to equity, and will seek to combine the $100m in capital with other investors on a commercial basis in companies, projects and technologies to accelerate emissions reductions,” the firm said.
Chapman Tripp’s lead partner on the transaction, Leigh Kissick, said that the team was “excited to have been involved in this significant milestone for New Zealand.”
“Green finance instruments are becoming more popular as companies seek to reduce their carbon footprint, and as reporting frameworks such as TCFD become mandatory for many large and/or high emissions companies,” she said.
In its NZX Top 50 Funding Composition – trends and insights 2020 report, the firm reported a “slight uptick” in green financing based on 2019 data.