There is a growing demand for sustainable finance from institutional investors, according to the big four bank.
CBA has made the call after helping raise $1.8 billion through the issuance of two green bonds in the past week, being the joint lead manager and green adviser for the bonds issued by Lendlease and by the NSW Treasury Corporation.
Lendlease raised $500 million for its first green bond, while NSW’s investment and financial management partner TCorp issued the largest green bond this year to date in the Australian market for $1.3 billion.
CBA executive general manager for global markets, Anthony Hermann said investor demand had been strong on both transactions.
“Green bonds provide borrowers with access to a deeper pool of liquidity and investors with access to environmental, social and governance investment products that they are seeking, which ultimately can lead to better distribution and pricing,” Mr Hermann said.
“More than ever, investors are keen to have a good level of exposure to green-related products to support their Environmental, Social and Governance commitments. We know from recent discussions with investors that an increasing number have a good appetite for sustainability-linked bonds, with 39 per cent even willing to pay a premium for this type of product.”
CBA was also involved with Wesfarmers on a sustainability-linked loan in March.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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