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Green Finance / Treasury & Capital Markets
Australia issues A$7 billion debut green bond
Sovereign offering aims to boost market scale, credibility, transparency, attract capital
The Asset 4 Jun 2024

The Commonwealth of Australia, working with the Australian Office of Financial Management (AOFM), a government agency that manages the country’s bond programme, has issued its inaugural green bond, raising A$7 billion (US$4.66 billion) in process.

The successful issuance of the bond demonstrates the robust investor appetite for high-quality, sustainable assets and sets a benchmark for future green bond issuances in the region.

The bond, which matures in June 2034, pays a coupon of 4.25%; and its issuance was jointly led by Deutsche Bank, the Commonwealth Bank of Australia, National Australia Bank and Westpac.

The issuance marks a significant milestone in Australia’s commitment to sustainable finance, according to Deutsche Bank, and reflects the growing demand for environmentally responsible investment opportunities.

The Australian government has committed to introducing a green bond programme to drive the country’s net-zero transformation and support environmental objectives; and, via the bond issuance, it aims to boost the scale and credibility of the country’s green finance market by attracting green capital while increasing transparency around climate outcomes.

Bond proceeds will be allocated to projects – including investments in renewable energy, energy efficiency and low-carbon transportation – that deliver positive environmental outcomes and align with the key green goals of climate change mitigation and adaptation, and improved environmental outcomes.

“This transaction not only underscores our commitment to sustainable finance,” says Ben Porter of Deutsche Bank’s debt capital markets division, “but also highlights the increasing importance of green investments in driving positive environmental outcomes.”

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