The $300 million green tranche of the bond is backed by NAB-originated mortgages for Australian residential properties that meet the Climate Bonds Standard criteria for Australian low carbon residential buildings.
According to NAB, investors in the bond include socially responsible funds and more mainstream investors from Australia and overseas.
This is the latest in a series of green bonds arranged by NAB. Between 2014 and 2018 the bank arranged 10 green bonds, including three issued by the bank itself; a $200 million sustainability bond for the Australian Catholic University in 2017; and a $500 million social bond in 2017.
Former NSW premier Mike Baird, who is now NAB's chief customer officer for corporate and institutional banking, said the arrangement was part of NAB's effort to play a part in "Australia's transition to a low carbon economy".
"This transaction is another small, but important, step in that journey," Mr Baird said.
The $2 billion RMBS is the first Australian security of its type to meet the criteria for certification under the Climate Bonds Standard by the Climate Standards Board of the Climate Bonds Initiative.
