Green bonds are nominal fixed income bonds which provide finance for specific Government projects with climate change mitigation and environmental outcomes.
Alongside Nominal Bonds and Inflation-Indexed Bonds, Green Bonds are expected to be an important and enduring part of the New Zealand Government Bond portfolio. Green Bonds will help ensure high quality government projects with robust environmental outcomes are financed, delivered, monitored and reported on.
New Zealand Debt Management (NZDM) will also focus on ensuring issuance is consistent with its core objective of minimising costs over the long term while accounting for risk and that liquidity in all its products is supported. In addition, the issuance of Green Bonds is expected to provide further diversification of its investor base and support development in the broader New Zealand sustainable finance market.
Design of the Green Bond Programme has been informed by international best practice and incorporates New Zealand specific elements. NZDM has engaged with market participants and worked in consultation with external structuring advisors on details of the Programme.
For further details regarding the Green Bond Framework, Second Party Opinion, and other publication information, please refer to the New Zealand Sovereign Green Bond Programme page under the Investor Resources section.