The new model divides SolarZero’s growth financing trust into two series
Chapman Tripp and DLA Piper have confirmed their roles in a deal that involves the establishment of a new financing structure under the New Zealand Green Investment Finance Limited (NZGIF) Solar Finance Programme.
Under the initiative, a scalable split-series model was set up to bring in $195m in debt facilities from Société Générale. Chapman Tripp guided major solar and battery system provider SolarZero, while DLA Piper advised NZGIF.
The model divides SolarZero's growth financing trust into two separate series, each catering to different investor groups. The Customer Series targets institutional investors in asset-backed securities and concentrates on funding the broad adoption of SolarZero's solar subscriptions. The Battery Series backs the expansion of SolarZero's Virtual Power Plant technology, which supports the national grid in the event of emergencies.
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"This is a significant milestone not only for us, but for Aotearoa’s structured debt space. Going forward, it’ll open the door to a range of new investors, enabling us to continue to scale our customer base and help more Kiwis save money by switching to solar, while expanding our Virtual Power Plant which we expect will play a meaningful role in supporting New Zealand’s energy transition”, SolarZero CFO James Allard said.
Chapman Tripp’s team provided advice on the financing model under the leadership of finance partner Luke Ford, one of the Most Influential Lawyers in New Zealand. Ford worked with Tom Yates, Rupert Gates and Tom van Schaik; tax partner Bevan Miles and Conor Tinker provided input on the tax aspects.
“This new financing model paves the way for future growth of the company and our sustainable finance markets, as the country strives to accelerate its renewable energy transition”, Ford said.
DLA Piper finance partner Rachel Brown added that the initiative “builds on the exciting developments and future growth in our sustainable finance markets and aligns with New Zealand’s goals to charge ahead with its renewable energy transition”.
Brown advised NZGIF on the structured finance aspects of the deal. She worked alongside Jacob Nutt, Aminder Patwalia and Ruby Medlicott.
Société Générale was the arranger of the facilities, receiving advice from Mayne Wetherell. Public Trust served as trustee for the two series, receiving advice from Webb Henderson.