Green Bond Issue a Success with $200 Million Raised for Electric Trains
Auckland Council, 27 June 2018: https://goo.gl/meGqtQ
Auckland Council has successfully raised $200 million from its Green Bond share issue that closed last week.
This makes Auckland Council the first organisation in New Zealand to successfully issue Green Bonds, with the funds raised set to be used to fund electric trains and associated infrastructure.
Auckland Mayor Phil Goff says, “we are the first council in New Zealand to issue green bonds. It is a clear signal that Auckland is committed to investing in low emissions technology and protecting our environment.
“There is clearly an appetite in the market for green investment. The $200 million raised through green bonds will help fund Auckland’s electric trains and associated infrastructure.
“Electric trains benefit public transport users with a cleaner and more efficient service, and it will help Auckland meet its commitment to lower our carbon emissions.
“Auckland must be an environmental leader and with billions of dollars being invested in Auckland’s infrastructure over the coming decade, we are embracing an environmentally friendly way to generate revenue and protect our environment as our city grows,” Mayor Goff says.
Councillor Ross Clow, Chair of the council’s Finance and Performance also welcomed the move.
“This goes to show what an environmentally aware organisation can do,” he said.
“By entering a rapidly growing market, which is projected to be worth USD $250-$300bn this year alone, we have sent a signal to the rest of New Zealand that smart financial management can go hand-in-hand with sustainable investment and greener outcomes.”
Auckland Council Chief Sustainability officer John Mauro says that the successful bond issue and discussions with the investment community have shown the market is on-board and there is appetite for more green investment options.
“This reflects the growing global interest in green finance and the launch of initiatives like the Green Bond Pledge to encourage green bond market growth.
“Meeting demand through further domestic green bond issuances and other climate finance mechanisms will be critical to transitioning New Zealand and Auckland to a net zero emissions economy.”
Full details of the offer are contained in the Product Disclosure Statement and in the Register Entry for the offer, both are available at www.companiesoffice.govt.nz/disclose and via Auckland Council's Investor Centre.