NZBusiness

NZBusiness + Management February 2019

The owner managers magazine

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Together we thrive How HSBC brought together a US renewable energy company with New Zealand's Infratil Limited and the New Zealand Superannuation Fund Last month, the UN released a report from the world's leading climate scientists warning that we, as a planet, have only 12 years to limit global warming. It makes sense then that one of the fastest-growing sectors in sustainable investment is renewable energy, including hydropower, biomass, and geothermal power, but especially wind and solar. Longroad Energy ("Longroad") is an independent developer and operator of wind and solar projects throughout the United States. Longroad is backed by Infratil Limited ("Infratil") (a New Zealand -based infrastructure investment company) and New Zealand Superannuation Fund (a New Zealand sovereign investment fund), both clients of HSBC New Zealand. In early 2018, when Longroad sought funding for a new wind farm development project in Texas, the Rio Bravo Wind Project, it was able to leverage HSBC's long-standing relationship with Longroad's sponsors Infratil and the New Zealand Superannuation Fund. This early support for Longroad and HSBC's industry expertise in the renewable energy sector connected HSBC's US relationship team to service Longroad's special banking needs. The Rio Bravo Wind Project, is a 238 MW wind farm development project in Starr County, Texas, incorporating 66 Vestas 3.6 MW V136 wind turbines. HSBC partnered with KeyBanc, CIBC, Zions Bank and National Australia Bank to provide a tailored solution involving complex and unique terms for the Rio Bravo Wind Project's construction financing. The Longroad transaction demonstrates the role a global bank like HSBC can play for a company looking to disrupt an industry that desperately needs it, and two companies on the other side of the world looking to fund exactly that. "It's about the bank's ability to leverage its global network," says Shareef Omar, a New Zealand-based Senior Relationships Manager at HSBC, who covers Infratil. "The global reach has been very impressive," says Longroad CEO Paul Gaynor. "It is great to work with an institution that has offices in New Zealand and right up the road from us here in Boston; the execution is seamless. We were impressed with HSBC's ability to quickly understand the deal and put a solution in place that fit. We look forward to repeating the experience." With a huge international network across 71 countries and territories, HSBC's global presence and in-country banking expertise provides a competitive advantage to execute solutions. HSBC pledges to provide $100 billion in sustainable financing and investment by 2025 to tackle climate change and support sustainable growth. To read more about the Rio Bravo Wind Project and HSBC's ability to access global networks, visit business.hsbc.co.nz

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