Chapman Tripp was the law firm on the financier’s side in New Zealand’s first loan tied to environmental, social and governance (ESG) goals.
The top firm advised ANZ, which provided a four-year $50m loan to Synlait. The loan is linked to how well the milk processor performs against the ESG criteria of Sustainalytics, an independent sustainability-rating company. This means that Synlait’s interest payments depend on how well it performs on sustainability goals.
Partner Emma Sutcliffe headed the Chapman Tripp team, which also included senior solicitor Jessica Elder. The top firm said that the team advised on arrangements for the loan facility as well as its integration with existing bank facilities of the milk processor.
“This is a cutting-edge product for ANZ, incentivising the borrower to improve its performance against independent ESG criteria. We were pleased to have Chapman Tripp helping us to implement the first loan of its type in New Zealand,” said Andrew Beuth, head of loans and markets execution at ANZ.
Sutcliffe said that it was exciting to be involved in rolling out the innovative financial product that promotes sustainability. “ANZ is trailblazing in offering the ESG facility to the New Zealand market and we were delighted to be able to assist,” she said.
MinterEllisonRuddWatts advised Synlait on the deal.