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.
New Zealand Sovereign Green Bond Framework
The New Zealand Sovereign Green Bond Framework provides the foundation to the New Zealand Sovereign Green Bond Programme. It outlines the Government’s climate and environmental priorities and sets the basis for identifying, evaluating, selecting and reporting on expenditures included in the Programme. The Framework also outlines the governance and operational requirements of the Programme.
Second Party Opinion
A Second Party Opinion (SPO), an independent review of the Framework, provides investors with assurance that the Framework is aligned to accepted market practices.
New Zealand Sovereign Green Bond Investor Presentation
How to Invest in New Zealand Sovereign Green Bonds
Subject to market conditions, the inaugural issuance of New Zealand Sovereign Green Bonds is expected in late 2022. Contact [email protected] for more information or subscribe to our Investor Update (below).