Financial Markets Conduct (Christchurch City Holdings Limited Sustainable Bond Offer) Exemption Notice 2021

Summary: The Financial Markets Conduct (Christchurch City Holdings Limited Sustainable Bond Offer) Exemption Notice 2021 exempts Christchurch City Holdings Limited (CCHL), subject to conditions, from the disclosure, governance, and financial reporting requirements in Parts 3, 4 and 7 of the Financial Markets Conduct Act 2013 (the Act) in relation to offers of ‘sustainable’, ‘sustainability’, ‘green’ ‘social’, or similar bonds (Sustainable Bonds) issued under CCHL’s sustainability framework.

The effect of the exemptions is that CCHL will be able to offer the Sustainable Bonds on a similar basis to an offer made in reliance on clause 19 of Schedule 1 of the Act (the same class offer exclusion).

The exemptions are subject to conditions that are consistent, as far as practicable, with the requirements of clause 19 of Schedule 1 of the Act and clauses 19 to 22 and clause 46 of Schedule 8 of the Financial Markets Conduct Regulations 2014 (which relate to the same class offer exclusion).  Additionally, the exemptions will be subject to conditions that create tailored disclosure requirements for the Sustainable Bond offering that particularly focuses on the sustainable features of the bonds, in line with the FMA’s principles set out in the Integrated Financial Product Framework.

The exemptions reflect the FMA’s initial approach to facilitating green/sustainable bond offers by effectively allowing CCHL to offer sustainable bonds on a similar basis to an offer made in reliance on the same class offer exclusion. Our approach to exemptions of this nature may evolve over time, particularly with respect to the accompanying requirements and conditions.  We will monitor developments in the New Zealand bond market relating to green/sustainable bonds, including the use of individual exemptions, to identify whether any changes to our policy approach are necessary.