ANZ has launched and priced its first green bond – raising $600 million for financing a portfolio of loans that develop low-carbon industries.
The five-year fixed rate bond, which is the largest green bond to be released by an Australian issuer, will have a coupon of 3.25 per cent.
ANZ global head of debt syndicate Paul White said: “Strong demand from a diverse spectrum of investors for this transaction highlights the growing number of sustainable and ethical mandates within the institutional investment community.”
“We expect the green bond market will continue to grow, as issuers look to tap the significant liquidity available.”
The bond will invest in projects that have positive environmental or climate benefits, said ANZ in a statement.
ANZ global loans director of sustainable finance solutions Katharine Tapley said: “The fact that this transaction was possible without direct investment from the Clean Energy Finance Corporation is a positive development for the green bond market in Australia."
The bond is certified by the Climate Bonds Initiative, an organisation that aims to promote large scale investments that will aid the development of a low-carbon economy.
Geopolitical risks and trade tensions rank as the greatest threat to global financial stability in 2020, according to a survey by the Deposi...
The AGM was a chance for shareholders to send a message. They didn’t take it. ...
Emerging markets have quickly become one of the only pockets left for investors to find yield. But how long can these growing economies cont...