The bank said the climate bonds, or 'green' bonds, are senior unsecured NAB corporate bonds with proceeds ring-fenced for financing a portfolio of renewable energy assets, including wind farms and solar energy facilities.
NAB group executive for product and markets Antony Cahill said the climate bond works with the same features of any NAB unsecured bond, but has the additional benefit of being dedicated to financing climate change solutions.
“This deal reinforces NAB’s position as the largest debt financier of renewable energy in Australia, [and] provides the sector with a new funding source,” Mr Cahill said.
“The launch also demonstrates the key role debt markets play in supporting the growth of new markets and financing a low carbon economy, and raises the profile of the green bond asset class in Australia,” he said.
A statement by NAB also pointed out 'impact investment' is a developing global market that is creating opportunities for investors seeking to address social or environmental challenges and generate a financial return.
“NAB believes it plays an integral role in building a strong economy and intends to be the leading financial institution delivering innovative impact investment opportunities for current and prospective customers,” said the statement.
“[Also] NAB is the founding partner of Impact Investing Australia and recently committed $1 million to support organisations in delivering finance solutions for important social issues," said the bank.
