NZGIF led the capital raise which attracted $90 million of private capital from First Sentier Investors and Natixis Investment Managers alongside our own investment of $80 million.
The Climate Bonds Initiative-certified solar loan will initially finance Aotearoa New Zealand’s largest residential PPA (Power Purchase Agreement) portfolio, managed by solarZero.
NZGIF Solar Finance is NZGIF's first private debt placement with international co-investors, and provides the long-term, fixed rate debt that is required to accelerate distributed solar in Aotearoa New Zealand.
The NZGIF Solar Finance programme is the first issuance by a New Zealand-based financial institution to secure Climate Bonds Initiative certification. This certification for climate-aligned debt instruments is awarded by the Climate Bonds Initiative following a science-based assessment of the programme’s sustainability attributes. The certification is used globally by bond issuers, governments, and investors to prioritise investments which genuinely contribute to addressing climate change.
Essentially, NZGIF Solar Finance is a repeatable financing solution for solar energy.
Access to debt finance that meets solar energy operators’ needs is a major barrier to developing solar generation projects in New Zealand. NZGIF Solar Finance will work with developers across Aotearoa New Zealand to finance and grow their portfolio. Once the portfolio matures, NZGIF Solar Finance will filter and organise loans by eligibility criteria, wrap the loan in a credit enhanced financing structure, secure Climate Bonds Initiative certification and then place the portfolio with institutional investors to provide attractively priced long-term debt to fund the portfolio.
Download the flyer for an overview of how the Solar Finance programme works.
First Sentier Investors is one of the cornerstone investors in NZGIF Solar Finance. The firm manages A$222.8 billion in assets and operates as a standalone global investment management business with offices across Europe, the Americas, and Asia Pacific.
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The second cornerstone investor is Natixis. Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France.
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As the cornerstone partner, solar-as-a-service provider solarZero is the first beneficiary of the programme. solarZero's residential portfolio consists of 10,000+ owner-occupied homes across New Zealand.
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We are the first financial institution in New Zealand to secure Climate Bonds Initiative certification, an instrument established to provide confidence that investments are consistent with global green bond standards.
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Public Trust is the programme trustee. Public Trust is New Zealand's longest serving trustee organisation.
Read moreFor all enquiries about NZGIF Solar Finance, get in touch via our Contact Us form.