Proceeds will be used to finance a portfolio of existing ANZ loans that directly contribute to developing low carbon industries, technologies and practices. Specifically, the portfolio comprises loans to wind power and solar projects and Green Star rated commercial property buildings in Australia, New Zealand and parts of Asia. Projects in the geothermal power and fuel efficient transportation sectors may also be considered in due course.
The bond has been certified by the Climate Bonds Initiative (CBI) – a Not-For-Profit organisation that aims to promote large-scale investments that will help to deliver a low- carbon economy. Ernst & Young has independently verified the bond against standards issued by the CBI and will review compliance on an annual basis until the bond’s maturity.
ANZ Group Treasurer Rick Moscati said: “We have developed the bond in response to investor demand and to deliver on our commitment to deploy capital for the transition to a lower-carbon economy. Importantly, the continued development of Australia’s green bond market should enable ANZ to increase funding allocated to green projects in the future.”
Katharine Tapley, Director Sustainable Finance Solutions in ANZ’s Global Loans business, said: “We are pleased to be leveraging our position as a leading financer to the renewables and commercial buildings sectors to support the development of the green bond market. Likewise, our customers whose projects are included in the bond have been overwhelmingly supportive of this move.”
Green bonds were created to fund projects that have positive environmental or climate benefits. Since the CBI was launched, annual global issuance of green bonds has risen from US$414 million in 2008 to US$36.6 billion in 2014.
ANZ is Sole Lead Arranger for the transaction.