NAB joins green bond market with $150 certified climate bond – Australia’s first

Print Friendly, PDF & Email

NAB launches $150m ‘certified’ climate bond, marking the first time an Australian issuer has brought a green bond to the local market.

share
Print Friendly, PDF & Email

National Australia Bank has jumped into the booming green bond market, becoming the first Australian lender to issue a certified climate bond aimed at funding a suite of wind and solar energy projects.

The $150 million bond, issued on Friday, is certified by the Climate Bonds Standard – a standard similar to the FairTrade labeling scheme, which allows investors to easily prioritise ‘climate-smart’ investments – and marks the first time an Australian issuer has brought a green bond to the local market.

It is expected to raise a minimum of $150 million and will fund a portfolio of 17 wind and solar energy projects. green_bond_Onfray_Unibail-Rodamco_pflanze_waechst_aus_geldiStock_000017297953Medium

As we noted here on Wednesday, demand for investments that address climate change and clean technology has soared in the past year and fuelled the rapid growth of the green bonds market, trebling it in size in 2014 (to $34 billion so far) and heading for an expected $100 billion in 2015.

“Green and climate bonds are where the proceeds go to projects or assets important to addressing climate change,” said Sean Kidney, CEO of Climate Bonds Initiative.

“Independent certification gives confidence to investors that money is being used in the promised way.”

In the case of the NAB climate bond, Kidney says, funds are being dedicated to wind and solar energy project finance loans.

“From the investors’ point of view, these are high quality investment grade bonds, fully backed by NAB. The only difference is that the proceeds are earmarked for green investment. What’s not to like?  This is an important development for investors acutely aware of the threat of climate change.”

Print Friendly, PDF & Email

3 Comments
  1. john 5 years ago

    This is so going to go down very badly with the present government.
    Why are they not lining up to fund the Carmichael Coal Mine project it has wonderful values it can mine 30 million tonnes of coal a year transport it 300 km transport it to India so lets look at the figures $3.50 over burden mine $5.00 process $1.00 transport $30 load $2.50 ship $10 that is a total of $52 now lets add repayment of debt $16 billion
    over 30 years @ 5% = $17.78
    profit lets say 5% = $26.67
    Now lets be real $52 plus $17 plus $26 = $95
    This is not going to fly end of story.
    No viable business plan as I see it.

    So one can see why a bank will give this business plan a miss.

    • Alen T 5 years ago

      A bank may not, but will a government that is wrapped around the fingers of the coal industry? C. Newman has already indicated the answer to this question.

      Federal ICAC is long overdue imo.

  2. JohnD 5 years ago

    This is a welcome move by the NAB and shows a sound investment and some vision for the future. It is a real shame that the government does not share the same vision. The effect of the government’s stance on renewable energy is to stifle investment so this could greatly limit the number of projects undertaken in Australia. Investors may find their money having to be invested in overseas projects instead of where it was intended to be.

Comments are closed.

Get up to 3 quotes from pre-vetted solar (and battery) installers.