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Overview

China Construction Bank contributes to $100 million NZD syndicated sustainability-linked loan to Wellington Airport for unspecified purposes

Commitments (Constant USD, 2023)$15,348,591
Commitment Year•2023Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 31, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Bank of New Zealand (BNZ)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Wellington International Airport Limited (WIAL)

Loan description

2023 syndicated $100 million NZD sustainability-linked loan from CCB for unspecified purposes

Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

On March 31, 2023, Wellington International Airport Limited (WIAL) announced that it had reached an agreement with four banks — China Construction Bank Corporation (CCB), Australia and New Zealand Banking Group (ANZ), Bank of New Zealand (BNZ), and MUFG Bank, Ltd. — to convert $100 million NZD of the airport's syndicated bank debt to a sustainability-linked syndicated loan. The facility has an unknown variable interest rate and unknown maturity. The conversion to a sustainability-linked lending facility means that achieving pre-determined sustainability goals would lower the airport's interest rate and line fee, with a failure to meet the goals leading to higher rates and fees. The airport's four sustainability targets were as follows: 1) Addressing greenhouse gas emissions that the airport is directly responsible for (scope 1 and 2), Science Based Target Initiative (SBTi) validation of reduction targets and public reporting of scope 3 emissions; 2) Supporting and enabling low-emission commercial flights at Wellington Airport through electric, hybrid and/or sustainable aviation fueled aircraft; 3) Progressing through the internationally recognized Airport Carbon Accreditation program, which runs independent assessments of airports around the world; 4) reducing the level of waste ending up in landfills from airport operations. ANZ served as Sustainability Coordinator.

Staff comments

1. AidData is unable to ascertain individual contributions made to the facility by each member of the lending syndicate, therefore equal contributions from each lender have been assumed. 2. In the absence of more information on the airport's previously-held syndicated bank loans, AidData is treating this loan conversion as new financing. This issue warrants further investigation.