Meridian Energy Limited · NZX:MEL
Meridian Energy — Debt Investor Presentation (2021)
14 slides from Meridian Energy's debt investor presentation, 2021
Slide 1: Meridian Energy Limited Green Finance Programme
MERIDIAN ENERGY LIMITED GREEN FINANCE PROGRAMME DNV GL 2021 PERIODIC SECOND PARTY OPINION GREEN BOND & LOAN PRINCIPLES PROJECT POOL (HYDRO) Scope and objectives Meridian Energy Ltd (“MERIDIAN” or “Issuer”) has converted its financing programme to a Green Finance Programme. The MERIDIAN Green Finance
Slide 2: Basis of DNV GL's opinion
Page 2 of 14 established criteria have been met, based on the information provided to us. In our work we have relied on the information and the facts presented to us by MERIDIAN. DNV GL is not responsible for any aspect of the nominated assets referred to in this opinion and cannot be held liable if
Slide 3: Work undertaken
Page 3 of 14 • Assessment of documentary evidence provided by MERIDIAN on the INSTRUMENT and supplemented by a high-level desktop research. These checks refer to current assessment best practices and standards methodology; • Discussions with MERIDIAN management, and review of relevant documentation;
Slide 4: Findings and DNV GL's opinion
Page 4 of 14 Findings and DNV GL’s opinion DNV GL’s ongoing and updated findings are listed below: 1. Principle One: Use of Proceeds. MERIDIAN has notionally earmarked the proceeds of the INSTRUMENTS to a pool of projects and assets including Renewable Energy (Hydro Power). DNV GL reviewed the crite
Slide 5: Schedule 1: Description of nominated assets
Page 5 of 14 SCHEDULE 1: DESCRIPTION OF NOMINATED ASSETS WITHIN THE MERIDIAN GREEN BOND & LOAN PRINCIPLES POOL (GBP) MERIDIAN has provided the schedule of nominated projects and assets for the GBP Pool at 30 June 2021 in NZD as follows: Project/Asset Type Location Linked SDGs Book Value (NZDm) Hydro
Slide 6: Schedule 2: Instruments earmarked against the GBP Pool
Page 6 of 14 SCHEDULE 2: LIST OF INSTRUMENTS NOTIONALLY EARMARKED AGAINST THE GBP POOL MERIDIAN has provided the schedule of instruments to be notionally earmarked against the GBP Pool at 30 June 2021 in NZD as follows: Instrument Type Value (NZDm) MERIDIAN USPP Series 2014-1 Tranche A Private Place
Slide 7: Schedule 3: Green Bond Eligibility Assessment Protocol
Page 7 of 14 SCHEDULE 3: GREEN BOND ELIGIBILITY ASSESSMENT PROTOCOL 1. Use of proceeds Ref. Criteria Requirements Work Undertaken DNV GL Findings 1a Type of The instrument must fall in one of Review of: The reviewed evidence confirms that the INSTRUMENTS fall in instrument the following categories,
Slide 8: Protocol: environmental benefits
Page 8 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings 1c Environmen All designated Green Project Review of: DNV GL reviewed all the hydropower projects proposed to be tal benefits categories should provide clear - Instrument terms included within the GBP / GLP Project Pool. environ
Slide 9: DNV GL's defined hydro project criteria
Page 9 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings Category 2 does result in inundation of terrestrial areas and the potential for this resulting in higher GHG emissions relative to fossil fuel use has been considered in the context of relative power density (area of added reser
Slide 10: Hydro project assessment and refinancing share
Page 10 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings Hume 3 NA (infinite) Yes (B) Burrinjuck 3 NA (infinite) Yes (B) Keepit 3 NA (infinite) Yes (B) DNV GL concludes that the nominated projects meet the defined criteria and may be considered to fall under the category of Renewable
Slide 11: Process for project evaluation and selection
Page 11 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings • A process to determine how the projects fit within the eligible Green Projects categories identified in the Green Bond/Loan Principles; • The criteria making the projects eligible for using the Green Bond/Loan proceeds; and •
Slide 12: Management of proceeds: tracking procedure
Page 12 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings Based on the evidence reviewed and the discussion we had with senior managers, we found nothing to suggest that MERIDIAN’s environmental, social and governance framework is not in line with good practice of the industry in whic
Slide 13: Tracking procedure and temporary holdings
Page 13 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings 3b Tracking So long as the Green Instruments Review of: The evidence reviewed shows that MERIDIAN has tracked and procedure are outstanding, the balance of the - INSTRUMENT term sheet traced the proceeds from the INSTRUMENTS us
Slide 14: Reporting criteria
Page 14 of 14 Ref. Criteria Requirements Work Undertaken DNV GL Findings considerations - a brief description from the Green Assets. Reporting on renewable generation is of the projects and the amounts being conducted collectively in asset pools. disbursed, as well as the expected environmentally su