GBN Member Transaction Database

The Australian Prime Property Fund Commercial (APPF Commercial) has 21 assets across NSW, Victoria, Queensland, ACT and South Australia. It is the first Australian fund to be awarded a 6-Star Green Star portfolio performance rating. It is also ranked at Number One on the 2017 Global Real Estate Sustainability Benchmark (GRESB) across all sectors and geographies. CEFC committed up to AU$100 million equity in the Fund and is targeting more than 40,000 tonnes of carbon emissions over the expected lifetime of the assets in the portfolio.

Through an agreement with the CEFC, Lendlease is targeting net zero emissions across the AU$4.5 billion commercial property portfolio as early as 2025. The net zero carbon goal is well ahead of the Australian Sustainable Built Environment Council’s call for buildings to achieve net zero carbon emissions by 2050 to meet international obligations.

Leading developer Mirvac is planning communities in Brisbane and Sydney where new homes aimed at first and new home buyers will have built-in solar-plus-battery systems that are expected to reduce household energy costs by as much as 90 per cent. CEFC is committing up to AU$90 million in debt finance as part of Mirvac’s broader financing of the masterplanned communities.Homes in the Mirvac developments will each come with a ready-to-operate 5.1kW rooftop solar system, alongside a 10kWh battery system. The three to four-bedroom homes will also incorporate high-grade insulation, LED lighting and energy efficient appliances.

Newcastle City Council’s Summerhill Waste Management Centre is transforming into a renewable energy hub with a 5MW solar farm being built alongside a 2.2 MW landfill gas generator and small wind turbine. The council has borrowed AU$6.5 million from the CEFC to help finance the solar farm, which is expected to save the council around AU$9 million over the life of the facility, once construction and operational costs have been factored in.

GFO committed to invest US$0.8 million of equity in a small Hydro project in Okayama prefecture. In this project, Nishi Awakura village of the local government became the main sponsor and established the special corporation (SPC) for the project. The project is a new private-sector small hydropower plants, utilizing the abundant water resources of the Yoshino River crossing the village. Nishi Awakura village in the business site is located at the northernmost tip of Okayama prefecture, and has a population of about 1,500 with a population decline and an aging population. As a local government project, the deal will realize a regional model that maximizes the use of regional resources and achieves both low carbon sustainability and sustainable development. This project, along with existing village hydropower plants, will assure that the Nishikakura village electricity needs are 40% covered by hydroelectric power generation.

CEFC committed up to AU$10 million to Thinxtra as it scales up its IoT network to target sustainable and energy conserving uses. In early 2017, Thinxtra introduced the Smart Council Program to the first selected 50 councils. This unique and successful program promised and delivered Sigfox network coverage within 4 weeks at no cost to the councils (including free installation, free development kits for local incubators and free connectivity for smart council application developments). With the support of the CEFC, the program is extended to 100 Australian councils that are ready to make IoT a reality for their community.

GIG acquired a 25 per cent interest in Westermost Rough offshore wind farm from Marubeni Corporation. GIG is a member of a consortium with Macquarie European Infrastructure Fund 5 (MEIF5) and the Universities Superannuation Scheme (USS) that already owns a 25 per cent stake in Westermost Rough. Ørsted also owns a 50 per cent interest in the project.

Located 8km off the Holderness coast in the United Kingdom, the 210 MW wind farm comprises 35 Siemens Gamesa Renewable Energy 6 MW direct-drive turbines and has been in commercial operation since June 2015. Westermost Rough represented the first commercial deployment of the 6 MW turbine anywhere in the world and was GIG’s and Marubeni’s first investment in a UK offshore wind project at the construction stage. Together, GIG and Macquarie have invested in almost half of the UK’s offshore wind capacity.

Major commercial auto and equipment lender Metro Finance’s Metro Green initiative is working to increase the uptake of low emissions passenger and light commercial vehicles. Metro Finance, which has an extensive broker network across Australia, is offering a 0.7 per cent discount on the standard rates offered to customers who purchase lower emissions passenger and light commercial vehicles that meet predetermined standards. CEFC committed up to AU$50 million in finance for the program, which is part of its broader focus on reducing transport-related emissions through the Sustainable Cities Investment Program.

National Australia Bank (NAB) is the first Australian bank to launch a green bond backed by residential mortgages that meet international low carbon buildings criteria. CEFC made a cornerstone investment of AU$25 million in NAB’s $300 million tranche of Class A1-G Notes that has been certified by the Climate Bonds Initiative (CBI).

The CBI has reviewed Australian building codes and energy ratings schemes to determine which are in line with these trajectories. Buildings approved under those codes and energy ratings schemes can automatically be deemed compliant with the Low Carbon Buildings criteria and eligible for CBI certification, providing confidence for investors about the sustainability of the underlying assets. NAB’s green notes were part of a larger non-certified AU$2 billion Residential Mortgage Backed Securitisation (RMBS).

The agricultural platform of Macquarie Infrastructure and Real Assets (MIRA) is targeting major clean energy benefits in Australian agriculture, working alongside the CEFC and the CSIRO. The CEFC investment will contribute to sustainable on-farm asset management practices, with MIRA investing in farms across multiple climatic zones, production regions and end markets.

A technology-driven whole-of-farm approach, incorporating the full range of precision agriculture and other sustainable farm management practices, will deliver increased productivity with improved energy efficiency. A key feature of the CEFC AU$100 million investment is the establishment of a specialist Energy, Emissions and Efficiency Advisory Committee – 3EAC – drawing on the skills of the CSIRO, MIRA and CEFC.

GFO committed to invest US$0.7 million of equity in a biogas project in Hokkaido. The biogas will be generated via fermentation of agricultural waste. Loans are co-financed mainly by regional commercial financial institutions. This project is the first biogas power generation project for Kadokawa Construction Co., and will be constructed using proprietary technology developed by collaborative research with Hokkaido University. In this way the project can be a pivotal step in the creation of future cases of implementation. The project will avoid 1,643 tonnes of carbon emissions annually. The project will also aid the establishment of “biomass industrial city concept” aiming at creation of employment by the new industry and activation of agriculture, forestry and fisheries industries locally.

CEFC supported the expansion of the emerging solar generation belt in regional New South Wales, committing AU$30 million in non-concessional senior debt finance to what will be the state’s largest solar farm. The 150MW (AC) Coleambally Solar Farm is being developed by Neoen Australia. The Coleambally Solar Farm will consist of about 565,000 solar panels on 550 hectares. The project has contracted 70 per cent of its output to EnergyAustralia. The Coleambally site was chosen after a feasibility assessment confirmed there was an abundant solar resource at the location, which also boasts an existing electricity substation with grid connection capacity.

The Smart-E residential loan program is a financing program developed in partnership with Energize CT and local lenders that uses a US$1.8 million loan loss reserve and interest rate buy-downs (US$4.3 million total) to stimulate the market for residential energy efficiency and solar loans in Connecticut. Through the product, the Connecticut Green Bank lowers the cost of capital for Connecticut residential customers seeking to install solar PV, high efficiency heating and cooling equipment, insulation or other home energy upgrades and reduces the loan performance risks to lenders. The US$1.8 million loan loss reserve is used to encourage lenders to offer below market interest rates and longer terms for unsecured loans, mitigates their losses, and encourages customers to undertake measures that would prove uneconomical at higher interest rates.

Through a partnership with Capital for Change (C4C), a local Community Development Financial Institution, the LIME loan provides for up to 20 year terms for an unsecured low interest loan product geared towards mid-stream energy improvements and serving properties where at least 60% of units serve renters at 80% or lower of Area Median Income. Projected energy savings are used to cover the debt service of the loan. Up to 25% of the proceeds of each loan can be used for non-energy health and safety upgrades. CT Green Bank supports LIME with a US$625,000 loan loss reserve and has committed to lend US$3.5 million to capitalize the loan fund. This program is supported by a $5 million investment from the MacArthur Foundation to the Housing Development Fund and CT Green Bank.

This term loan provides gap financing enabling qualifying energy improvements to be implemented, as well as health and safety measures as needed. The loan product is subordinate, secured debt; unsecured debt may also be considered based on requirements of existing debt and property/project financials.

The Connecticut Green Bank offers a solar PV lease product targeted to the low-to-moderate income (LMI) population of the state through the solar developer PosiGen. The product is a partnership with PosiGen, a senior lender (Enhanced Capital) and a tax equity investor (U.S. Bank).

Connecticut Green Bank supplied the initial senior debt of US$5 million which has been subordinated to an additional US$5 million lent to the lease fund by Enhanced Capital to provide US$20 million in lease financing for solar projects targeting LMI homeowners. The Connecticut Green Bank is committed to lend an additional US$5 million as needed for future growth once an additional US$5 million in private capital is secured. The state’s Residential Solar Investment Program’s tiered LMI performance based incentive (PBI) provides PosiGen a significantly higher incentive for customers demonstrating these income requirements.

The RSIP is a rebate program that provides incentives to offset the cost for homeowners to install solar PV systems. Incentives are provided either upfront (i.e., through an expected performance based buy-down or EPBB) for homeowners that want to own a system or over time based on system production (i.e., through a performance based incentive or PBI) for homeowners who want to lease a system from a third-party owner. CT Green Bank incentive is issued to the Contractor on behalf of the Customer. With either incentive type, the Renewable Energy Credits (RECs) are owned by the Connecticut Green Bank.

An energy audit is required to be conducted as part of all projects. In an assessment conducted in December of 2014, it was identified that solar PV deployment in the low-to-moderate (LMI) household market segments were not performing as well as the non-LMI
market segment. Back then, the LMI market needed to deploy between 2 to 10 times more solar PV to be on par with the non-LMI market segment. Thus, the RSIP now includes an LMI PBI to provide additional incentive to support the growth of solar PV deployment in this underserved market segment.

The Kresge Foundation made a US$3M program related investment in the CGB to support deployment of resilient renewable energy projects (to include energy storage) in urban and coastal communities. The PRI is a loan for 10 years and 2% interest. The aim is to fund 13 to 18 projects at affordable multifamily and community/critical facilities, with local businesses acting as community hubs.

In a traditionally difficult sector to address, multifamily projects have a significant need for predevelopment financing, trusted technical support, and streamlined access to funding programs. In 2015, CT Green Bank developed a pre-development energy loan program to support property owners in identifying high-quality technical assistance providers, and to fund the work needed to scope and secure financing for deeper, cost effective energy upgrades. Through this program, CGB uses a US$650,000 revolving loan fund to directly offer loans of 0.0% (LMI) to 2.99% (non-LMI) and up to two year terms.

CGB originates these loans, in partnership with partners. Owners can petition for loan forgiveness of the Navigator loan, if for some reason a project is unable to proceed to implementation. The affordable multifamily version of this program is housed at the Housing Development Fund, a local CDFI, and part of a US$5 million program related investment from MacArthur Foundation is being used to support the program. Ideally, the pre-development loans will be used to help clients get to the point where they can take advantage of the LIME loan program. Read about how one pre-development loan is helping preserve affordable housing in Connecticut: https://ctgreenbank.com/seabury-coop-financing/.

Connecticut Green Bank – in partnership with select local lenders and car dealerships – offers low-interest financing for EVs. The program is for a lmited time. Financing is available for new or used EVs. Maximum term is 72 months (lender participation may vary). Maximum loan amount is US$30,000. This program is for purchase only and not refinancing current car loans or lease-end buyout.

The Green Bank Solar PPA is a partnership between Connecticut Green Bank and Onyx Renewable Partners L.P. The joint program will provide funding for 15-20+ megawatts of commercial-scale solar projects in Connecticut. Onyx leverages its existing fund structure and relationships with Credit Suisse and future tax equity partners to capitalize and own solar photovoltaic projects originated by the Green Bank and local solar developers. This new Connecticut-specific allocation within Onyx’s larger commercial solar portfolio will build upon the success of the Green Bank’s Solar Lease 2 fund, which reached capacity in 2017.

The Green Bank Solar PPA fund will provide power purchase agreements to a broad range of property owners by making use of Connecticut’s Commercial Property Assessed Clean Energy (C-PACE) Program to allow unrated solar customers, including commercial, industrial, and non-profit property owners, to access financing alongside state agencies, housing authorities, municipalities, schools, and rated corporations. This innovative structure was pioneered under the Green Bank’s Solar Lease 2 program and has successfully opened the solar PPA market to customers traditionally excluded from solar financing.

Per Public Act 11-80 Section 103, the Green Bank developed a three-year pilot program for AD by setting aside US$2 million a year for three years – for a total of US$6 million. Funds to support the pilot programs can be used as grants, power purchase agreements or loans. There are to be no more than five (5) AD projects, each no more than 3 MW in size at a support for projects of no more than US$450 per kW on a grant basis.

Through a subordinated debt position at 2% for 15 years, CGB serves 20% of the capital stack of food waste to energy projects that serve to reduce food and solid waste, while producing on-site renewable energy for waste water treatment plants in Connecticut.

ANZ joined with CEFC to establish a A$150 million Energy Efficient Asset Finance program that makes it easier for businesses to invest in energy-efficient and renewable technologies that will help reduce their energy use, carbon foot print and fuel costs. Through the program, ANZ can offer a 0.70%p.a. discount to business customers on the standard asset finance rate for new assets up to A$5 million that meet CEFC energy efficiency requirements. In August 2019, CEFC committed to facilitating a further A$100 million to the program. The additional finance will take ANZ’s total commitment to A$250 million, with a focus on enabling businesses to purchase small-scale solutions to reduce their energy use, carbon footprint and fuel consumption. As of late 2019, more than 500 ANZ business and commercial customers had used ANZ Energy Efficient Asset Finance since it was launched in December 2017. Investments include small-scale rooftop solar and battery storage, improved insulation and low-emission or electric vehicles.

The Benchmark CT initiative is offered through a partnership with CT Housing Finance Authority (CHFA), where WegoWise will benchmark 1,600 multifamily properties and guide building owners through an analysis to identify opportunities. The first year of benchmarking is offered for free. An initial 500 properties were benchmarked in partnership with New Ecology, Inc. between 2014 and 2015. The Green Bank and CHFA will leverage the benchmarking results to identify the highest priority targets across the portfolio for either predevelopment or term financing.

GIG entered into a partnership arrangement with Covanta Holding Corporation to jointly develop, fund and own new waste-to-energy projects in the UK and Ireland. GIG has underscored its commitment to the partnership by agreeing to invest EUR136 million in a 50 per cent stake in Covanta’s newly operational Dublin Waste-to-Energy Facility. Covanta and GIG have identified up to six projects across the UK for potential inclusion in the partnership. Once realised, these projects are expected to treat approximately 2 million tonnes of residual waste per annum.

The CT Solar Lease was a financing product developed in partnership with a tax equity investor (US Bank) and a syndicate of local lenders (First Niagara Bank and Webster Bank). CT Green Bank provided a US$3.5 million loan loss reserve in combination with US$2.3 million in subordinated debt and US$7.2 million in equity.

SL2 enabled lease and power purchase agreement (“PPA”) financing for residential and commercial-scale solar PV systems in Connecticut installed by an array of independent contractors. The CT Solar Lease is the first fund to secure solar leases and PPAs using a PACE lien, a lauded innovation. SL2 was an overwhelming success; the program’s capacity (over $70 million) was fully utilized, with nearly 1,200 residential systems and dozens of systems of commercial-scale projects accounting for over 20 megawatts of new distributed deployment.