NZX Announcement
31 March 2023
LGFA ANNOUNCES SUSTAINABLE FINANCING BOND FRAMEWORK
New Zealand Local Government Funding Agency Limited (LGFA) has today released its Sustainable Financing Bond Framework (Framework).
As part of our commitment to assist borrower councils and council-controlled organisations (Borrowers) to fund sustainable assets and activities, and incentivise GHG emissions reductions, LGFA has established two sustainable loan programmes. The Green, Social and Sustainability (GSS) Lending Programme was introduced in October 2021 and the Climate Action Loans (CALs) Programme in December 2022, with lending under each programme being "Sustainable Loans".
LGFA has developed the Framework to:
- recognise LGFA’s commitment to support Borrowers to fund sustainable assets and activities, and incentivise GHG emissions reductions;
- enable LGFA to issue bonds that are notionally allocated to the Sustainable Loans on LGFA’s balance sheet; and
- advance the market for sustainable finance by providing an innovative opportunity for investors to support Borrowers to achieve their sustainability aspirations.
The Framework outlines the process by which LGFA intends to issue and manage sustainable financing bonds that will be notionally allocated to a pool of Sustainable Loans that meet the eligibility criteria set out in the Framework.
The Framework follows the proceeds-based pillars of the general market standards for sustainable finance, namely the International Capital Markets Association's Green Bond Principles (GBP), Social Bond Principles (SBP), and Sustainability Bond Guidelines (SBG). However, LGFA does not claim direct alignment of the Framework with these principles as the pool of Sustainable Loans comprises both GSS Loans and CALs together in the same asset pool.
The Framework was developed with assistance from Westpac New Zealand Limited as Sustainability Coordinator.
Sustainalytics has provided a Second Party Opinion on the Framework.
Investor Conference Calls
LGFA intends to hold global investor conference calls to outline the Framework. Details of the calls are:
Monday, 3 April 2023
2:00pm NZT – 12:00pm AEST – 10:00am SGT/HKT – 11:00am JST
To register, please click here
Monday, 3 April 2023
8:00pm NZT – 6:00pm AEST – 4:00pm SGT/HKT – 5:00pm JST – 9:00am BST – 10:00am CEST
To register, please click here
Attachments
• Sustainable Financing Bond Framework
• Investor Presentation
• Second Party Opinion from Sustainalytics
• GSS Loan Criteria
• CAL Criteria
For further information contact:
Nick Howell
Head of Sustainability
Phone: +64 21 227 3738
ENDS
Released on behalf of Local Government Funding Agency Limited by Mark Butcher, Chief Executive.