Kiwi Property announces Sustainable Debt programme

NZX RELEASE
31 March 2021
Kiwi Property announces Sustainable Debt
programme

Kiwi Property today launched a Sustainable Debt programme, the latest initiative in the
Company’s comprehensive carbon reduction strategy.
“Kiwi Property has been committed to sustainability for almost two decades and today
it’s part of the company’s DNA. In 2020 we successfully achieved a 50% reduction in
greenhouse gas emissions, compared to our 2012 baseline and we’re proud to have
been awarded an A rating by the Carbon Disclosure Project,” says Chief Financial
Officer, Gavin Parker.
“By decreasing our resource consumption, investing in the prosperity of our
communities and ensuring the resilience of our assets, we not only encourage the long-
term performance of our property portfolio, we also drive sustainable returns for our
investors,” says Parker.
Details of Kiwi Property’s approach to the use of Sustainable Debt are outlined in the
Company’s new Sustainable Debt Framework which has been developed in line with
applicable green and sustainability-linked finance standards, including the ICMA Green
Bond Principles
1
, with assistance from ANZ, as sustainable debt coordinator, and EY, as
independent limited assurance provider.
The Framework outlines the governance framework which will apply to Sustainable
Debt issued by Kiwi Property, including the Company’s existing NZX-listed bonds
(KPG010, KPG020, KPG030, and KPG040), which will be designated as Green Bonds from
31 March 2021. An amount equal to the proceeds from the issuance of Green Bonds or
Loans will be allocated to finance or refinance qualifying planned and/or existing low
carbon buildings.
Kiwi Property also released to NZX a copy of its Sustainable Debt Framework, the Use of
Proceeds Report and EY’s Assurance Statement today.
For more information about Kiwi Property’s commitment to sustainability visit:
https://www.kiwiproperty.com/corporate/sustainability/
ENDS

Notes:
1. For further information on the Green Bond Principles, visit: www.icmagroup.org/sustainable-
finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/

2
Contact us for further information:

Campbell Hodgetts
Communications and Investor Relations Lead
campbell.hodgetts@kp.co.nz;
+64 27 5634985


About us:
Kiwi Property (NZX: KPG) is one of the largest listed property companies on the New Zealand
Stock Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for over 25 years
and proudly own, and manage a significant real estate portfolio, comprising some of New
Zealand’s best mixed-use, retail and office buildings. Our objective is to provide investors with a
reliable investment in New Zealand property through the ownership and active management of
a diversified, high-quality portfolio. S&P Global Ratings has assigned Kiwi Property an issuer credit
rating of BBB (stable) and an issue credit rating of BBB+ for each of its fixed rate senior secured
bonds. Kiwi Property is the highest rated New Zealand company within CDP (Carbon Disclosure
Project) and is a member of FTSE4 Good, a series of benchmark and tradable indices for ESG
(Environmental, Social and Governance) investors. Kiwi Property is licensed under the Real Estate
Agents Act 2008. To find out more, visit our website kp.co.nz

---

Kiwi Property
Sustainable Debt
Framework

2
Sustainable Debt Framework
Kiwi Property
Contents
Purpose 3
Introduction to Kiwi Property 4
Kiwi Property Sustainable Debt Framework 6
Section 1: Green Bonds and Loans 7
Section 2: Sustainability-Linked Bonds and Loans 13
Further information 17
Contacts 18

3
Sustainable Debt Framework
Kiwi Property
Purpose
The purpose of this document is to
outline the governance framework
which will apply to Sustainable Debt
issued by Kiwi Property. As sustainable
finance markets continue to evolve,
Kiwi Property may make changes to this
document over time to remain in line
with market best practice.
3
Sustainable Debt Framework
Kiwi Property

4
Sustainable Debt Framework
Kiwi Property
Introduction to Kiwi Property
Reducing our environmental footprint
Creating thriving communities
Elevating ESG consciousness
INTRODUCTION
Kiwi Property is one of New Zealand’s largest NZX
listed property companies, with a portfolio that
includes some of the country’s most well-known
mixed-use, retail and office assets. Our purpose is
to ‘bring places to life’ underpinned by a deeply
held commitment to environmental and social
governance that dates back almost 20 years.
As a developer, owner and manager of mixed-use communities, we recognise
that sustainability is critical to the people who work, visit, shop, socialise and
stay at our assets – as well as to the long-term performance of our business.
Accordingly, Kiwi Property has a comprehensive and quantifiable sustainability
strategy, focused on three priority pillars:

5
Sustainable Debt Framework
Kiwi Property
We are committed to delivering a brighter New Zealand by decreasing
our resource consumption, and making a positive contribution to society.
With our broad reach across multiple stakeholder groups (including tenants,
customers, and suppliers), our sustainability strategy also aims to galvanise
and empower others to make positive change within their own businesses.
By ensuring our assets are resilient, investing in our communities and
intensively managing our assets, we not only optimise the performance of
our property portfolio, we also drive sustainable returns for our investors.
Kiwi Property aims to lead in an industry where sustainability is a key driver.
Amongst our peers, we are well placed, achieving an ‘A’ rating from the
Carbon Disclosure Project in 2020, the only company in New Zealand to do
so. In addition, we report against additional sustainability metrics and/or
reporting frameworks, including FTSE4Good.
Year on year, Kiwi Property measures the material impacts of its buildings,
across energy, waste, water consumption and carbon footprint, and actively
seeks to improve these metrics. Key milestones include achieving a 50%
reduction in 2020 emissions compared to the 2012 baseline.
Kiwi Property owns and develops low carbon and energy efficient buildings,
and maintains a portfolio of highly rated, environmentally sustainable office
buildings. We have large solar arrays at a number of our properties and are
one of the largest users of commercial solar energy in the country. More than
66 electric vehicle and 35 electric bike charging stations are also available
across our portfolio, encouraging customers to adopt more environmentally
friendly transport alternatives.
Kiwi Property proudly partners with a range of leading environmental and
social organisations, including the New Zealand Green Building Council, Safe
Space Alliance and Keystone Trust. In 2020, we gained Be.Lab accessibility
accreditation for our entire shopping centre portfolio, the first time a New
Zealand company has achieved this milestone.
For more information on Kiwi Property’s sustainability efforts and latest
sustainability report, please visit https://www.kiwiproperty.com/corporate/
investor-centre/sustainable-debt-framework/
A reference in this document to “Kiwi Property” includes a reference to
Kiwi Property Group Limited, Kiwi Property Holdings Limited and each other
group member that provides a cross-guarantee in respect of the
indebtedness of the group.
INTRODUCTION

6
Sustainable Debt Framework
Kiwi Property
Kiwi Property Sustainable Debt
Framework
The establishment of the Kiwi Property Sustainable Debt Framework
(the Framework) is a natural extension of Kiwi Property’s sustainability
strategy and the focus on sustainable business outcomes. This
Framework sets out the process by which Kiwi Property intends to
use Sustainable Debt on an ongoing basis to finance or refinance
low carbon and energy efficient buildings within Kiwi Property’s
property portfolio. For the avoidance of doubt, this Framework does
not form part of the contractual terms of any Sustainable Debt
issued by Kiwi Property.
Sustainable Debt may include:
• Green Bonds and Loans, and;
• Sustainability-Linked Bonds and Loans
The Framework sets out the processes for these products
separately and may be subsequently updated at Kiwi Property’s
discretion as relevant market standards and best practices continue
to evolve over time.
INTRODUCTION

7
Sustainable Debt Framework
Kiwi Property
SECTION ONE
In accordance with the above market standards
and best practice, the Framework covers four key
components:
1. Use of proceeds
2. Process for project evaluation and selection
3. Management of proceeds, and
4. Reporting
Use of proceeds
Kiwi Property intends to allocate an amount equal to the
proceeds of Green Bonds and Loans to finance or refinance low
carbon and energy efficient buildings based on the Green Star
or NABERSNZ rating tools that constitute Eligible Projects (see
the section “Eligible Projects” below). Eligible Projects will also
be consistent with the eligible green projects contemplated by
the GBP and the GLP, and the following United Nations
Sustainable Development Goals (SDGs):
SDG 9: Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation; and
SDG 11: Make cities and human settlements inclusive, safe,
resilient and sustainable.
Green Bonds and Loans under the Framework may take the
form of:
• Green Bonds in accordance with the ICMA Green Bond
Principles (GBP)
1
and, where appropriate, Climate Bonds
Standard (CBS) as published by the Climate Bonds Initiative
(CBI); and
• Green Loans in accordance with the APLMA Green Loan
Principles (GLP)
2
and, where appropriate, the CBS.
Green Bonds and Loans
1
https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/
2
https://www.lma.eu.com/application/files/9115/4452/5458/741_LM_Green_Loan_Principles_Booklet_V8.pdf

8
Sustainable Debt Framework
Kiwi Property
SECTION ONE
Existing and/or planned buildings, including upgrades, will be
eligible to be categorised and labelled as an Eligible Project, if they
meet one or more of the following criteria:
Eligible Projects
Buildings that do not have one of the above current ratings but are
targeting a particular rating will also qualify if evidence can be
provided that indicates the targeted rating will be achieved.
Kiwi Property intends to ensure that the aggregate value of its
Eligible Projects is at least equal to the aggregate amount of all
outstanding Green Bonds and Loans.
Each Eligible Project will be valued at its latest market valuation or
at cost where a separate market valuation has not been obtained.
If a building no longer meets the eligibility criteria set out in this
Framework, Kiwi Property will:
• Cease to categorise that building as an Eligible Project; and
• Reduce the aggregate value of its Eligible Projects by the value
of that building.
A list of Eligible Projects will be published within the annual ‘use of
proceeds’ reporting. For any Green Bonds or Loans that are
certified by the CBI as complying with the CBS, the ongoing
certification status will be noted within these reports.
• Certified as obtaining, or targeting, a minimum 5-Star
NZGBC Green Star Design and/or Built rating; or
• Certified as obtaining, or targeting, a minimum 4-Star
NABERSNZ Energy Base Building rating or Energy
Whole Building rating.

9
Sustainable Debt Framework
Kiwi Property
SECTION ONE

Kiwi Property has processes in place to ensure that Eligible Projects
are identified and evaluated to ensure compliance with this
Framework. In determining eligibility of Kiwi Property’s low carbon
and energy efficient buildings, Kiwi Property utilises the following
rating tools, where applicable:
• NABERSNZ rating. Assets across the portfolio are rated as part
of Kiwi Property’s ongoing monitoring of its operational assets.
NABERSNZ is a system for rating the energy efficiency of office
buildings. It is an independent tool, backed by the New Zealand
government.
• Green Star rating. Green Star is an internationally recognised
rating system for the sustainable design, construction and
operation of buildings and fit-outs. Green Star provides a
trusted mark of independent verification to support decision-
making.
Once buildings are determined to have met the relevant criteria for
inclusion, they will be included as Eligible Projects.
Process for project evaluation and selection

10
Sustainable Debt Framework
Kiwi Property
SECTION ONE
Upon the establishment of this Framework, Kiwi Property:
• Will classify its existing bonds as Green Bonds; and
• Although those bonds were raised for general corporate
purposes, will allocate an amount equal to the proceeds of
those bonds to finance or refinance Eligible Projects.
When Kiwi Property issues new Green Bonds or Loans, those bonds
or loans will be issued for the purpose of financing or refinancing
an Eligible Project, and Kiwi Property will allocate an amount equal
to the proceeds of the Green Bonds or Loans to finance or
refinance an Eligible Project.
Kiwi Property will maintain a register of Eligible Projects that outlines
their current value, allocation of proceeds and the NABERSNZ and/
or Green Star rating of each building.
Kiwi Property intends to monitor the allocation of proceeds and the
current value of Eligible Projects on a yearly basis, aligned to the
end of year annual financial reporting process.
Kiwi Property will service its debt obligations under Green Bonds
and Loans out of its general cashflows and not specifically from
revenues generated by Eligible Projects alone.
Unallocated proceeds or surplus funds
Kiwi Property does not intend to have any unallocated proceeds
from Green Bonds or Loans. However, if this occurred:
• Kiwi Property will apply an amount equal to those unallocated
proceeds to repay revolving bank debt or invest in cash
deposits or cash equivalents until such time as Kiwi Property is
able to allocate an amount equal to those unallocated proceeds
to finance or refinance Eligible Projects;
• No contractual right of review or repayment will arise, and no
loss of green classification will occur; and
• Kiwi Property will disclose this information within the annual
Use of Proceeds reporting.
Management of proceeds

11
Sustainable Debt Framework
Kiwi Property
SECTION ONE
Kiwi Property understands the importance of transparency and
disclosure. All reporting will be in line with applicable market
standards. Impact reporting may be provided where applicable
or incorporated within use of proceeds reporting.
The following reporting will be publicly available following
establishment of the Framework:
Reporting
Document
Sustainable Debt Framework
Timing
At the time of establishment of the
Framework (subsequently updated at
Kiwi Property’s discretion)
Assurance statements
Use of proceeds reporting
At the time of establishment of the
Framework and then annually, aligned to
the end of year financial reporting process
Annually, aligned to the end of year
financial reporting process

12
Sustainable Debt Framework
Kiwi Property
SECTION ONE
Impact Reporting
Kiwi Property may also report on relevant environmental impact
metrics, where feasible. Examples of impact indicators that may be
reported include NABERSNZ rating, floor space of qualifying green
real estate (m²), carbon footprint by building, and reduction over
time (tCO2).
Assurance
In accordance with the applicable market standards, Kiwi Property
sought assurance from an approved verifier prior to establishment
of the Framework and will seek further assurances on an annual
basis for the use of proceeds issued under this Framework, and as
deemed necessary by Kiwi Property. Confirmation of assurance will
be made publicly available.
Reporting
Use of proceeds reporting
Kiwi Property intends for annual Use of Proceeds reporting
to include:
• Summary of Eligible Projects, including location,
type of asset and asset value;
• Current NABERSNZ and/or Green Star rating;
• Confirmation of the aggregate amount of Green
Bonds and Loans outstanding;
• Disclosure of any unallocated proceeds;
• Alignment with relevant SDGs;
• Confirmation of compliance with applicable market
standards; and
• Assurance updates or the most recent assurance
report.

13
Sustainable Debt Framework
Kiwi Property
S E C T I O N T W O
Sustainability-Linked Bonds and Loans are distinct from Green
Bonds and Loans as described above. Proceeds from Sustainability-
Linked Bonds and Loans are utilised for general corporate
purposes. The proceeds are not required to be allocated towards,
monitored or tracked against any specific purpose.
Sustainability-Linked Bonds and Loans issued under the Framework
may take the form of:
• Sustainability-Linked Bonds in accordance with the ICMA
Sustainability-Linked Bond Principles (SLBP)
3
• Sustainability-Linked Loans in accordance with the APLMA
Sustainability-Linked Loan Principles (SLLP)
4

The above components form part of the SLBP. The SLLP has four
key components, which are substantially similar and aligned to
those above, and references for Sustainability-Linked Loans will be
highlighted where required.
3
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-
linked-bond-principles-slbp/
4
https://www.lma.eu.com/application/files/5115/8866/8901/Sustainability_Linked_Loan_Principles_V032.pdf
Sustainability-Linked Bonds and Loans
In accordance with the above market standards
and best practice, the Framework covers five key
components:
1. Selection of key performance indicators (KPIs);
2. Calibration of Sustainability Performance Targets
(SPTs);
3. Financial characteristics;
4. Reporting; and
5. External review.

14
Sustainable Debt Framework
Kiwi Property
S E C T I O N T W O
Selection of KPIs
When undertaking an issuance of Sustainability-Linked
Bonds or Loans, Kiwi Property will communicate how
the instrument and selected KPIs relate to elements of
Kiwi Property’s sustainability strategy and the Framework
that are material to the company’s overall performance.
Kiwi Property is committed to delivering a brighter
New Zealand by reducing its resource consumption,
supporting community building and providing a reliable
investment option via a resilient and high-quality property
portfolio.
For the issuance of Sustainability-Linked Bonds or Loans,
where the bond coupon or the loan margins are linked to
the achievement of sustainability targets, Kiwi Property
has provided the following metrics as a guide for
potential target setting:
• NABERSNZ building ratings;
• Green Star building ratings;
• Ratings on a subset of properties or Kiwi Property’s
total portfolio;
• Energy, water or waste consumption for properties, or
on a portfolio basis;
• Greenhouse gas (GHG) emissions for properties, or on
a portfolio basis; and
• Other environmental or social sustainability metrics
that are relevant to Kiwi Property’s overall
sustainability strategy and this Framework.

15
Sustainable Debt Framework
Kiwi Property
Selection of sustainability performance
targets
Kiwi Property will ensure the targets set and metrics used will be
meaningful to Kiwi Property’s sustainability programme and will
be aligned to the group’s sustainability strategy.
Measurement of performance with respect to selected SPTs for any
Sustainability-Linked Bonds or Loans will be undertaken periodically
as relevant for the selected targets. At a minimum, measurement
will be annual.
Material factors that may impact the achievement of SPTs (either
positively or negatively) will be disclosed in the relevant
documentation for each Sustainability-Linked Bond or Loan.
Financial characteristics
The proceeds of Kiwi Property’s Sustainability-Linked Bonds and
Loans will be used for general corporate purposes, unless
otherwise stated. These transactions will feature financial and/or
structural characteristics that encourage the achievement of the
SPT. This may include both penalties and/or incentives, depending
on the transaction.
The magnitude of the coupon or margin adjustment, as well as the
effective date(s) (otherwise known as trigger date(s)) will be
detailed in the relevant documentation for each transaction.
External review
Kiwi Property will undertake an appropriate external verification for
each Sustainability-Linked Bond or Loan on issue. This includes
external assurance of sustainability performance prior to issuance
and ongoing performance in relation to the selected SPTs for each
issuance.
S E C T I O N T W O

16
Sustainable Debt Framework
Kiwi Property
S E C T I O N T W O
Reporting
For Sustainability-Linked Loans, Kiwi Property and the arranging
bank(s) will agree on appropriate reporting parameters and the
schedule for disclosing information on sustainability performance
to the lenders.
For Sustainability-Linked Bonds, at a minimum, Kiwi Property will
undertake annual public reporting regarding the issuance and
performance in relation to the SPTs. This reporting will be available
in Kiwi Property’s annual report and website, and will include
relevant information relating to the aspects of Section 2 of this
Framework.
At issuance, Kiwi Property will disclose the reporting that will be
provided, including its location, frequency, scope and assurance
commitments. Kiwi Property will ensure the provision of timely
information regarding the performance in relation to the selected
SPTs for each transaction.
Governance
Kiwi Property’s Audit and Risk Committee (ARC) and Environmental,
Social and Governance Committee (ESGC) will oversee matters
relating to sustainable debt. The ARC is a sub-committee of the
Company’s Board, responsible for oversight of matters including
financial management and controls, reporting and risk
management. The ESGC is a sub-committee of the Company’s
Board, responsible for reviewing and recommending to the Board
for approval the ESG strategy, frameworks and initiatives, amongst
other things. The ARC and ESGC meet at least quarterly and will
consider sustainable debt issues and opportunities on an ongoing
basis.

17
Sustainable Debt Framework
Kiwi Property
Further
information
More information on Kiwi Property’s sustainability strategy and
performance can be found at:
Sustainability: https://www.kiwiproperty.com/corporate/
sustainability/
Latest Kiwi Property Annual Report: https://view.publitas.com/
kiwi-property-89am9pxqykbk/kiwi-property-annual-report-2020/
page/1

Contacts
Kiwi Property Group Limited
Level 7, Vero Centre
48 Shortland Street
Auckland 1140
+64 9 359 4000
kp.co.nz
info@kp.co.nz
Registrar
Link Market Services Limited
Level 11, Deloitte Centre
80 Queen Street
Auckland 1142
+64 9 375 5998 or
0800 377 388
linkmarketservices.co.nz
enquiries@
linkmarketservices.co.nz

---

Kiwi Property Group Limited
Use of proceeds report
As at March 2021

1.0 Introduction
Kiwi Property allocates an amount equal to the proceeds of Green Bonds or Loans to finance or refinance Eligible Projects as defined in the Kiwi
Property Sustainable Debt Framework dated March 2021 (as updated from time to time, the Framework). Eligible Projects include energy efficient
buildings that meet one or more of the following criteria:
> Certified as obtaining, or targeting, a minimum 5-star NZGBC Green Star Design and/or Built rating; or
> Certified as obtaining, or targeting, a minimum 4-star NABERSNZ Energy Base Building rating or Energy Whole Building rating.
This report must be read together with the Framework, which can be found here:
https://www.kiwiproperty.com/corporate/investor-
centre/sustainable-debt-framework/
2.0 Green Bond issuance
As at March 2021, Kiwi Property’s Green Bonds on issue are as follows:
NZX ticker KPG010 KPG020 KPG030 KPG040 Total
ISIN
NZKIPD0010L3 NZKPGD0020L6 NZKPGD0030L5 NZKPGD0040L4 n/a
Amount (NZ$m) 125 125 125 100 475
Issue date 7 August 2014 8 September 2016 20 December 2017 13 November 2018 n/a
Maturity date 20 August 2021 7 September 2023 19 December 2024 12 November 2025 n/a

3.0 Eligible Projects
An amount equal to the aggregate amount of all outstanding Green Bonds has been allocated to the following Eligible Projects:
Property Location Use Rating
Basis of determination
Total
30 Sept 2020
valuation
Construction
cost
ASB North Wharf 12 Jellicoe Street, Auckland Office 4.5 Star NABERSNZ $245,000,000 $245,000,000
ANZ Raranga 286 Mount Wellington
Highway, Auckland
Office 5 Star Green Star
Office Design
$77,000,000 $77,000,000
The Aurora Centre 56 The Terrace, Wellington Office 5.5 Star NABERSNZ $173,000,000 $173,000,000
Vero Centre 48 Shortland Street, Auckland Office 4.5 Star NABERSNZ $475,000,000 $475,000,000
Total Eligible Projects $893,000,000 $77,000,000 $970,000,000

Kiwi Property confirms that there are currently no unallocated proceeds.
Eligible Projects are consistent with the ICMA Green Bond Principles eligible project categories and are consistent with UN Sustainable
Development Goals 9 and 11.
4.0 Ongoing reporting
In accordance with the Framework, Kiwi Property commits to undertaking annual ‘use of proceeds’ reporting and will include impact
information as applicable over time.
5.0 Assurance
The information in this report has been independently verified by an appropriate verifier.

6.0 Contacts
For further information or feedback, please contact Kiwi Property at:
Kiwi Property Group Limited
Level 7, Vero Centre
48 Shortland Street
PO Box 2071
AUCKLAND 1140
T: +64 9 359 4000
W: kp.co.nz
E: info@kp.co.nz

---

Independent Limited Assurance Report to the Directors and
Management of Kiwi Property Group Limited







Assurance conclusion
Based on our limited assurance procedures, as described in this statement as of 30 March 2021, nothing
came to our attention that caused us to believe that the following outstanding Green Bonds (‘the Bonds or
“the Green Bonds”’) issued by Kiwi Property Group Limited (“Kiwi Property Group”):
• KPG 20/08/21 6.15% - Kiwi Property Group Bonds (KPG010)
• KPG 07/09/23 4.00% - Kiwi Property Group Bonds (KPG020)
• KPG 19/12/24 4.33% - Kiwi Property Group Bonds (KPG030)
• KPG 12/11/25 4.06% - Kiwi Property Group Bonds (KPG040)
have not been presented, in all material respects, fairly and in accordance with the International Capital
Market Association (“ICMA”) Green Bond Principles (June 2018), Loan Market Association (“LMA”) Green
Loan Principles (December 2018) and Kiwi Property Group’s Sustainable Debt Framework (“Criteria”).

Other Matters
We draw attention to the use of external property valuations to determine whether the value of the total project
pool exceeds the combined value of Kiwi Property Group’s Green Bonds. These external property valuations
have been prepared as at 30 September 2020 and contain paragraphs explaining the valuations have been
concluded on the basis of material valuation uncertainty due to the impact of the COVID-19 pandemic on the
property market, indicating that less certainty and a higher degree of caution should be attached to the
valuation than would normally be the case. Our opinion is not modified in respect of this matter.
Scope
Ernst & Young (‘EY’, ‘we’) was engaged by Kiwi Property Group to undertake a limited assurance engagement, as
of 30 March 2021, in relation to Kiwi Property Group’s Green Bonds in order to provide an opinion as to
whether the subject matter detailed below (‘Subject Matter’) meets, in all material respects, the Criteria as
present below.

Subject Matter and Criteria
The subject matter and associated criteria for this limited assurance engagement are set out in the table below.


























Subject Matter

Criteria


The subject matter for this limited assurance
engagement includes:
• Environmental performance and information
relating to additional projects to be funded by the
Bonds
• Policies and procedures relating to the
management of the Bonds
• Kiwi Property Group’s green borrowing
documentation including Kiwi Property Group’s
Sustainable Debt Framework.

Technical details of the assets identified as ‘green’
(‘Green Assets’)
Use of Proceeds and Eligibility Criteria from Kiwi
Property Group’s Sustainable Debt Framework that
eligible assets are buildings (including upgrades) that
meet the following criteria:
• Certified as obtaining or targeting a minimum 5-
Star NZGBC Green Star Design and/or Built rating;
or
• Certified as obtaining or targeting a minimum 4-
Star NABERSNZ Energy Base Building Rating or
Energy Whole Building Rating.
The ICMA Green Bond Principles (June 2018) and the
LMA Green Loan Principles (December 2018)
requirements on:
• Use of Proceeds
• Process for Project Evaluation and Selection
• Management of Proceeds
• Reporting.

2

A member firm of Ernst & Young Global Limited




Management Responsibility
The management of Kiwi Property Group is responsible for the preparation and fair presentation of the Subject
Matter. This responsibility includes establishing and maintaining internal controls relevant to the preparation and
presentation of the Subject Matter that is free from material misstatement, whether due to fraud or error, selecting
and applying appropriate accounting policies; and making estimates that are reasonable in the circumstances.
Assurance Practitioner’s Responsibility
Our responsibility is to express a conclusion on whether anything has come to our attention that causes us to
believe that the Subject Matter, has not been presented, in all material respects, fairly and in accordance with the
criteria detailed above. Our assurance engagement has been planned and performed in accordance with the
International Standard on Assurance Engagements (New Zealand) 3000: Assurance Engagements Other than
Audits or Reviews of Historical Financial Information (‘ISAE (NZ) 3000’).

Level of Assurance
Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than
for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed. While we considered the effectiveness of management’s internal controls when
determining the nature and extent of our procedures, our assurance engagement was not designed to provide
assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to
checking aggregation or calculation of data within IT systems.
Our Approach
Our assurance procedures performed included, but were not limited to:
• Reviewing whether the policies and procedures established by Kiwi Property Group related to the post issuance
of the Green Bonds to assess whether they were aligned to the requirements of the ICMA Green Bond
Principles (June 2018) and LMA Green Loan Principles (December 2018)
• Confirming the eligibility of assets for inclusion in Kiwi Property Group’s Green Bonds use of proceeds pool
against Kiwi Property Group’s Sustainable Debt Framework
• Interviewing selected business units and group level personnel to understand key issues related to Kiwi
Property Group’s relevant policies and procedures
• Checking the accuracy of asset valuations and project costs
• Requesting documentation supporting assertions made in the Subject Matter
• Seeking management representation on key assertions.

Limitations
There are inherent limitations in performing assurance – for example, assurance engagements are based on
selective testing of the information being examined – and it is possible that fraud, error, or non-compliance may
occur and not be detected. There are additional inherent risks associated with assurance over non-financial
information including reporting against standards which require information to be assured against source data
compiled using definitions and estimation methods that are developed by the reporting entity. Finally, adherence to
ISAE (NZ) 3000, the ICMA Green Bond Principles (June 2018) and LMA Green Loan Principles (December 2018) is
subjective and will be interpreted differently by different stakeholder groups.
Our assurance was limited to Kiwi Property Group’s Green Bonds and did not include statutory financial statements.
Our assurance is limited to policies and procedures in place as of 30 March 2021. Partners and employees may deal
with Kiwi Property Group on normal terms within the ordinary course of trading activities of the business of Kiwi
Property Group. We have no other relationship with, or interest in, Kiwi Property Group.

Use of Report
Our responsibility in performing our assurance activities is to the Directors and Management of Kiwi Property Group
only and in accordance with the terms of reference for this engagement as agreed with them. We do not therefore
accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance any
such third party may place on Kiwi Property Group’s Green Bonds is entirely at its own risk. No statement is made
as to whether the criteria are appropriate for any third-party purpose.

3

A member firm of Ernst & Young Global Limited





Our Independence and Assurance Team

In accordance with APES 110 Code of Ethics for Assurance Practitioners, the firm and all professional personnel
involved in this engagement have met the independence requirements of New Zealand or International professional
ethical requirements. Our team has the required competencies and experience for this assurance engagement.

Observations on particular aspects of our engagement:
We provide selected observations aligning to the ICMA Green Bond Principles (June 2018) and LMA Green Loan
Principles (December 2018) core components, to provide the reader with further understanding on how these
Green Bonds meet the Criteria. These observations are not intended to detract from our conclusion provided
above.
Use of Proceeds:
• Proceeds from the Green Bonds are intended to be used for financing and re-financing purposes.
• Proceeds are intended to be allocated to buildings owned by Kiwi Property Group that are certified as
obtaining, or are targeting, a minimum of a 5-Star New Zealand Green Building Council (NZGBC) Green Star
Design and/or Built rating and/or certified as obtaining, or targeting, a 4-Star NABERSNZ Energy Base
Building Rating or Energy Whole Building Rating
• Any building that fails to meet the Eligibility Criteria set out in the Sustainable Debt Framework or loses its
rating during the tenor of the bond will no longer be categorised as an Eligible Asset and the total value of
the Eligible Projects will be reduced by the value of the removed asset. Any unallocated proceeds will be
used to repay revolving bank debt or invest in cash deposits or cash equivalents until they can be reapplied
to Eligible Projects
• The NZGBC Green Star rating (Green Star NZ) is an internationally recognised standard developed for New
Zealand. Green Star NZ is aligned with the other major international building rating tools, including the
British BREEAM (Building Research Establishment Environmental Assessment Method) system and the
North American LEED (Leadership in Energy and Environmental Design) system. Green Star NZ assesses
the overall environmental impact of a building covering the following categories: Energy, Water, Materials,
Indoor Environment Quality, Transport, Land Use & Ecology, Management, Emissions, and Innovation. It
rates buildings from 0 to 6 Stars. Buildings that achieve a 4, 5, or 6 Star rating receive Green Star
certification.
• NABERSNZ rating is adapted from the National Australian Building Environment Rating System (NABERS)
and is a national rating tool for commercial buildings administered by NZGBC. NABERSNZ rates the actual
environmental operational performance of office buildings across Energy, Water, Waste and Indoor
Environment. It rates buildings from 0 to 6 Stars. Buildings that achieve a 4, 5, or 6 Star rating are assessed
as having excellent performance, market leading performance and aspirational performance respectively.
From 1
st
January 2021, a 4-star NABERNZ rating is the minimum requirement for existing buildings, under
the Government’s recent Energy Efficient Buildings procurement rules.
• The use of proceeds of these Bonds aligns with the Green Bond Principles 2018 project category “green
buildings which meet regional, national or internationally recognised standards and certifications”.
Process for Project Evaluation and Selection
• Kiwi Property Group has developed a Sustainable Debt Framework that outlines the environmental
objectives of Green Bonds, eligibility criteria for determining Green Assets and the process for project
selection and evaluation. The list of Kiwi Property Group’s eligible Green Assets tested is included in Annex
A.
Management of Proceeds
• Kiwi Property Group has implemented processes to manage proceeds received from Green Bonds and to
monitor the on-going use of proceeds. These processes include:
• An annual process for monitoring the on-going use of proceeds and report on the use of proceeds
• A tracking process through existing internal reporting systems to assess project costs, where market
valuations are not available
• A process for deploying any unallocated proceeds to temporary cash equivalent investments
• Kiwi Property Group will obtain on-going assurance over the Green Bond portfolio to confirm that the Green
Assets continue to meet the ICMA Green Bond Principles (June 2018) and LMA Green Loan Principles
(December 2018) and the requirements as set out in the Sustainable Debt Framework.
Reporting
• Kiwi Property Group will report on the use of proceeds of Green Bonds at least on an annual basis that will
include a list of Green Assets, the amount allocated to each Green Asset and the Green Star rating and/or
NABERSNZ of each Green Asset.

4

A member firm of Ernst & Young Global Limited







Ernst & Young Limited






Graeme Bennett
EY Assurance Partner
30 March 2021

5

A member firm of Ernst & Young Global Limited






Annex A
Kiwi Property Group’s list of eligible green assets

Property Location Class Country
ASB North
Wharf
12 Jellicoe Street, Auckland 5 star Green Star (Design)
4.5 star NABERSNZ
New Zealand
ANZ Raranga 286 Mount Wellington Highway, Auckland 5 star Green Star (Design) New Zealand
The Aurora
Centre
56 The Terrace, Wellington 5.5 star NABERSNZ New Zealand
Vero Centre 48 Shortland Street, Auckland 4.5 star NABERSNZ New Zealand