Published on: November 04, 2021
Russell McVeagh has assisted Genesis Energy with the establishment of its Sustainable Finance Framework (Framework) and a $100 million Sustainability Linked Loan (SLL) with Westpac NZ, which are both aligned with the Climate Transition Finance Handbook. Westpac NZ was Genesis' sustainable finance coordinator.
The Framework sets out how Genesis intends to issue and manage sustainable debt on an ongoing basis to support the company's sustainability objectives.
Genesis' SLL incorporates targets focused on:
reductions across all scopes of greenhouse gas emissions in line with the Paris Agreement to limit global warming to 1.5°C (verified by the Science Based Targets initiative);
the development of renewable energy generation; and
transformational education, training and employment opportunities for young people in Genesis' local communities.
Genesis' cost of borrowing under the SLL is linked to its performance against these targets.
Banking and Finance senior associate Jesse Fairley led the Russell McVeagh team, with assistance from solicitor Jessie Rao.
"We are delighted to have worked with the Genesis team on the alignment of the company's funding arrangements and ambitious sustainability goals, including its climate transition strategy and future of work programme. The transaction highlights the growing importance of SLLs as an economic commitment to positive change and as a firm we are proud of our work in this space," says Fairley.
The transaction continues Russell McVeagh's leading role in the development of the New Zealand sustainable finance market, with Banking and Finance partner John Powell having advised on the recent Summerset (the largest in the market) and Kathmandu syndicated SLL transactions, as well as KiwiRail's world-first green loan certification.
You can read more about Genesis' Framework and SLL here.
For more information, please contact:
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Partner, Banking and Finance
Banking and Finance