Green Bond Fact Sheet
Auckland Council

Date: 22-Jun-2018

Issue date: 27-Jun-2018 Maturity date: 27-Jun-2023 Tenor: 5Issuer Name

Auckland Council

Amount Issued

NZD200m/USD136m

Country of risk

New Zealand

CBI Database

Included

Issuer Type1

Local Government

Bond Type

Senior secured

Green Bond Framework

Link to Framework

Second party opinion

N/A

Certification Standard

Low Carbon Transport

Assurance report

N/A

Certification Verifier

EY

Green bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☐ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☒ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☒ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Land use &agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience

Use of Proceeds☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

Auckland Council will report on the Use of Proceeds of Green Bonds annually that will
include as a minimum: a list of Eligible Assets, the value of the nominated Eligible
Assets, and the environmental performance of each Eligible Asset.

Company information

Auckland Council represents approximately 1.6 million people stretching from
Wellsford in the north to Franklin in the south.

Firsts, records andcertificationsFirst green bond from New Zealand local government and second in short order fromthe Shaky Isles following a Certified transaction from Contact Energy.

Proceeds description

The Auckland retail bond is New Zealand’s first green bond to obtain a Pre-Issuance
Certification under the Climate Bonds Standard. It is secured by a charge over all
current and future rates revenues of the Council, on a pari pasu basis with otherCouncil bonds.
The bond proceeds will be used for rail infrastructure electrification, particularly
passenger trains, that meet the Climate Bonds Standard Low Carbon Transport Criteria.
However, the Green Bond Framework includes a wider range of eligible sectors,
including renewable energy, low carbon buildings and upgrades meeting at least
standards such as NABERSNZ excellent, low carbon transport (buses, bus rapid transit,
commuter rail, hybrid cars with a GHG emissions threshold of 75 gCO2/passenger),water and waste management, sustainable forestry, adaptation and energy efficiency
projects related to the categories.
Auckland Council’s bond takes New Zealand’s green bond market total to USD1.5bn,
with 100% Certified issuance.

Climate Bonds viewUnderwriters

ANZ Bank New Zealand, Arranger and sole lead manager

Deal commentsCredit Rating

AA (S&P)

Pricing summary

The deal was upsized from NZD150m to NZD200m. The coupon of 3.17% reflects amargin of 0.50% over the 5-year swap rate. (source)

Investors summary

The final allocation was to 23 different investors with 50% of the allocation going into
institutional investors and 73% of this allocation to ‘green investors’ with 11% toinvestors with specific green mandates.
Final allocations went 50% to institutional investors, 49% to banks and 1% to brokers.
The deal is expected to be partially sold down to retail investors within 6-12 months.

1

Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign