National Australia Bank has raised $205 million in the United States markets to finance an Australian wind farm – a pioneering deal that builds on NAB’s position as the country’s largest debt financier of renewable energy projects.
The funding for the Hallett Hill (HH2) wind farm in South Australia, which has a total capacity of 71.4 megawatts with 34 turbines, came entirely from US investors and will be the first time an Australian renewable energy asset has been financed in US Private Placement market.
NAB Executive General Manager for Capital Financing, Steve Lambert, said this latest bond further strengthened the bank’s position as a leader in innovative financial solutions in the renewable energy sector.
“This Hallett Hill bond follows our $300 million climate bond in December last year – another Australian first – and puts NAB firmly at the forefront of product innovation and environmental financing,” Mr Lambert said.
“NAB is already the largest debt financier of renewable energy in this country, but with market-leading financing solutions such as the Hallett Hill deal, we are looking to be a global leader in this space.
“This is further evidence that debt markets can play a pivotal role in financing a low carbon economy and help the renewable energy sector continue to grow.”
The Hallett Hill Senior Secured Notes had an issue rating of BBB (Stable) from Standard & Poor’s and have been verified in accordance with the Green Bond Principles by DNV GL.
The funds will be utilised to fully refinance its existing syndicated bank facilities and provides HH2 with long dated maturities not typically available in the Australian market. HH2 is 100 per cent owned by the Energy Infrastructure Trust which is managed by Infrastructure Capital Group.
HH2 is estimated to generate 262 gigawatt hours of electricity which is the equivalent of 190,000 tonnes of avoided greenhouse gas emissions, or enough generated power for around 43,000 average Australian households for one year.
NAB recognises that environmental challenges such as climate change, resource scarcity and natural capital loss and degradation are challenges that affect our economy and society.
About Impact Investment
Impact investment is a developing global market, creating opportunities for investors seeking to address social or environmental challenges and generate a financial return. NAB believes it plays an integral role in building a strong economy and intends to be the leading financial institution delivering innovative impact investment opportunities for current and prospective customers.
NAB is the founding partner of Impact Investing Australia and together we recently launched the NAB Impact Investment Readiness Fund to bridge the gap in the Australian market that exists between mission-driven organisations in need of funding and investors actively seeking impact investment opportunities.