Commonwealth Bank has helped H.R.L. Morrison & Co. arrange a NZ$180 million sustainability loan for a public-private partnership (PPP) that manages five schools in New Zealand.
The transaction, where CBA acted as sole sustainability coordinator and co-lender, is the first sustainability loan for school facilities in NZ. Using “sustainability loan” labels means the projects meet criteria around delivering improved environmental and social outcomes.
Established in 2017 with the Ministry of Education in New Zealand, the NZ Schools III PPP aims to design, finance, construct, and maintain, for 25 years following construction, three primary schools and two high schools across Auckland, Hamilton, and Christchurch. The NZ Schools III PPP refinanced its initial loan, which reached maturity, with the sustainability loan.
The NZ Schools III PPP’s sustainability loan was accredited on project-specific factors including building energy efficiency, waste management, green building standards, water management, and social features such as high-quality, inclusive learning environments for students, access to local residents for community use, and dedicated satellite classrooms for students with disabilities. Third-party opinion and verification was provided by specialist certification body, DNV.
“We see the independent accreditation of this sustainability loan as an important benchmark for future social infrastructure projects,” said Jon Collinge, sustainability director at Morrison & Co. “Our thanks to the Commonwealth Bank of Australia for their help in designing this loan, and enabling us to keep delivering better outcomes for our schools portfolio.”
“Sustainable public infrastructure, like these five schools in New Zealand, helps drive better outcomes for both the environment and the communities they serve, and spotlights the importance of sustainability for future generations,” said Charles Davis, managing director of sustainable finance at Commonwealth Bank.
