Intellihub gets world-first $1.4b certified Green Loan

Intellihub staff hold smart meter (Telstra)
Image: Intellihub

Pacific Equity Partners’ smart utility infrastructure-as-a-service company, Intellihub Group (Intellihub), has received a world first Electrical Grids and Storage Certification under the Climate Bonds Standard (CBS) for its Green Loan. 

The new A$1.45 billion five-year facility will fund the rapid rollout of smart meters to homes across Australia and New Zealand.

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Intellihub’s Green Loan is the first to meet Climate Bonds Initiative’s (CBI) strict criteria for Electrical Grids and Storage. The new facility has been arranged by ANZ, BNP, Crédit Agricole, MUFG, NAB, SMBC and Société Générale. Loan terms have been set at investment grade levels, reflecting the quality of Intellihub’s smart meter and data intelligence business and the internationally recognised green status of the loan.

In addition, part of the requirements of a CBS Certified green loan is the level of accountability required by the issuer. Intellihub has established its own Sustainable Finance Framework (Framework) setting out how it will manage the funds. This has been independently assured by EY (Ernst & Young). Reports are made annually throughout the term of the loan which show funds are being used to provide products and services that have climate integrity through both their contribution to climate mitigation and their adaptation and resilience to climate change. 

Since making its initial investment through its Secure Asset Fund in 2018, Pacific Equity Partners (PEP) has built Intellihub into a multi-billion-dollar business, delivering innovative metering and data solutions to consumers, retailers and network service providers. Smart meters are an essential part of energy systems in Australia and New Zealand.

They measure the energy consumption from homes, business and commercial and industrial customers and provide real-time insights into how energy is being consumed and optimise the home for solar, batteries and electric vehicles. They are also key enablers for new services like demand response and virtual power plants. 

Pacific Equity Partners managing director Evan Hattersley said, “Green Loans help to align business and environmental objectives. They are a win-win for companies and communities as we work together to protect our planet and ensure we build more sustainable businesses.

“We are pleased with the support Intellihub has received from the banking market and the formal recognition of its green credentials, which will allow it to access additional sources of green-linked financial capital. It is an exciting first and a great example of our firm’s focus on combining business and climate.”

ANZ acted as sole Green Loan Coordinator for Intellihub. 

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ANZ managing director, corporate finance Christina Tonkin said ANZ was delighted to have advised PEP and Intellihub on this significant transaction.

“Intellihub’s Green Loan is a world-first, demonstrating PEP’s commitment to the decarbonisation of Australia’s electricity system and leadership in aligning its sustainability-driven investment strategy to its capital structure. This landmark transaction expands the application of green loans into a whole new industry globally,” she said.

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