Brighte banks $200m in climate bonds deal

• Brighte closes green bond issuance on the back of strong solar demand through 2022
• Extends Brighte’s funding runway, with an additional 190,000 tonnes of CO2 emissions savings per annum
• Strongly supported by NAB & Westpac as joint lead managers 

Green financier Brighte today announced it had closed a $200m asset-backed securitisation, successfully securing investor support for the third year in a row.

Brighte founder and CEO Katherine McConnell said the transaction highlighted the value to investors of green assets through the cycle.

“This is a clear demonstration of the market’s continued support of Brighte and our mission to make sustainability affordable and accessible.”

“As a mature green-focused lender, we are able to generate a sophisticated green investment product that’s attractive to institutions and the underlying borrowers are highly creditworthy, making the risk-reward compelling.”

“This deal facilitates the growth of our loan book, enabling us to fund the increasing demand for household solar, batteries and home electrification, especially at a time when more consumers are looking to sustainable investments to help them bring power bills down.”

“Through 2022, Brighte has also been partnering with state governments for scheme delivery and we are proud this transaction enables us to continue supporting governments in achieving emissions reduction through household decarbonisation.”

Of the offering, 88% are Green Notes with six classes of Climate Bond Certified Green Bonds, with proceeds from the issuance used to finance solar energy and related assets. The Class G-NG Notes will be retained by Brighte, and the deal is structured such that the green asset coverage should increase for Noteholders over time. 

The transaction is expected to deliver over 190,000 tonnes of CO2 emissions savings per annum, equivalent to the electricity consumed by nearly 40,000 average Australian homes over a year.

The $200m raise is Brighte's third public debt raising. In 2020, Brighte raised $190m in Australia’s first all green asset-backed security deal. Last October, Brighte’s $185m transaction was oversubscribed reflecting the quality of the underlying credit and the continuing investor demand for ESG-related assets.

“This is the third significant deal of this size that Brighte has closed in the past three years,” said McConnell.

“Institutions realise household sustainability is a real and growing problem that needs to be solved and there is a growing impetus behind the movement towards green investment at scale.”

The deal was managed jointly by NAB and Westpac and supported by advisors Vixory Capital.

NAB Executive, Client Coverage, Corporate & Institutional Banking Cathryn Carver said NAB was proud to be a long-standing banking partner, "NAB has been there from the start supporting Brighte's journey and we admire their commitment to making a difference for households in becoming energy-efficient. As the world transitions to a low-carbon economy, we are excited by the enormous growth and opportunities that are on the horizon for Brighte.”

Westpac’s Managing Director, Head of Financial Institutions, Public Sector and Health Sofie Sullivan said “Westpac is delighted to support Brighte on its third green bond, which will see more renewable energy going into more Australian households. Westpac is committed to supporting our customers as the country transitions toward Net Zero, and it’s companies like Brighte that are helping lead the way.”

Since 2015, Brighte has raised $575 million in public debt and $145 million in equity.