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Spark Finance Limited, the wholly owned subsidiary of Spark New Zealand Limited that carries out the
borrowing activities for the Spark group (“Spark”), announced today that it successfully completed a bookbuild for a 6.5-year NZ$100m Sustainability-Linked Bond to institutional investors. The domestic notes will mature on 29 September 2028 and will pay an interest rate of 4.37% per annum. The bonds are expected to be rated A- by S&P.
To support both this transaction and any further sustainably linked financing that Spark may choose
to undertake in future, Spark has established a Sustainable Finance Framework, which is closely aligned to its Sustainability Framework. Spark’s Sustainable Finance Framework outlines the Company’s sustainable financing focus areas and the process by which Spark intends to issue and manage bonds
and/or loans that are linked to the achievement of sustainability outcomes.
For its Sustainability-Linked Bond (SLB), Spark has selected one timebound Sustainability Performance Target (SPT) to reduce absolute Scope 1 and Scope 2 Greenhouse Gas emissions. The SLB target is informed by Spark’s Science Based Target (SBT) that has been verified by the Science Based Target initiative (SBTi) to reduce absolute Scope 1 and Scope 2 Greenhouse Gas emissions by 56%
by FY30 from an FY20 baseline. The target reflects material ambition in relation to current performance and is consistent with Spark’s business strategy.
The SLB includes a financial impact that is dependent on the achievement of the SPT as at 30 June 2026. Should Spark fail to meet its emissions reduction target, a premium pricing adjustment in the form of an interest rate step will occur and will apply until maturity.
Stefan Knight, Spark Finance Director, says: “Spark Finance is pleased to issue New Zealand’s first
Sustainability-Linked Bond, following the refinancing of three existing loans to incorporate a Sustainability-Linked Loan structure back in November 2021. Sustainable finance is one way we can demonstrate our commitment to supporting Aotearoa’s decarbonisation and continuing to work hard to improve our own environmental performance.”
ANZ Head of Sustainable Finance, Dean Spicer, says: “ANZ is proud to have supported Spark on the completion of the first Sustainability-Linked Bond, which is an important development of the sustainable finance market in Aotearoa New Zealand. ANZ commends Spark for demonstrating its commitment to sustainability through this transaction.”
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Details of Spark’s Sustainability-Linked Bond:
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