The five year fixed rate bond was priced at a spread of 15 basis points over the swap rate, with a yield of 0.643%. It was primarily distributed to European institutional investors. ANZ, HSBC, BNP and Barclays acted as Joint Bookrunners on the transaction.
The proceeds are intended to support projects offering broad social, economic and environmental benefits including funding for hospitals, schools, green buildings, clean water, public transport systems or renewable power plants.
ANZ Head of Group Funding Mostyn Kau said: “ANZ is responding to growing fixed income investor interest in using the SDGs as an impact measurement for their portfolios. The strong demand for this transaction highlights the growing number of sustainable mandates within the institutional investment community – we expect this trend to continue.”
ANZ Head of Sustainable Finance Katharine Tapley said: “This bond is the first Euro SDG bond globally and provides an innovative form of funding while driving a deeper and more liquid market for socially responsible investment. Our ambition is to be a leading issuer and arranger in green and sustainability bond markets, in turn supporting our customers and the broader community.”
ANZ issued its inaugural AUD600m Green Bond in 2015, which at the time was the largest climate related bond by an Australian issuer. Since then, ANZ Chief Executive Officer Shayne Elliott became a signatory of the CEO Statement of Support for the SDGs in 2016.
ANZ recently increased its commitment to fund and facilitate low carbon and sustainable solutions, lifting its original target of $10 billion by 2020, to at least $15 billion by 2020.