National Australia Bank (NAB) today became the first Australian bank to issue a public offshore green bond which, at EUR 500 million, is the biggest ever green bond from an Australian issuer. There was strong investor demand for what is NAB’s second green bond with the order book well oversubscribed.
NAB EGM Capital Financing Steve Lambert said the green bond caters to strong investor demand and reinforces NAB’s position as the leading Australian debt financier of renewable energy and arranger of green bonds in Australia.
“Increasingly, investors are looking for ways to generate measureable impact. NAB’s focus on shared value and impact investment means we are able to provide choice, allowing investors to invest in ways that meet their own environmental criteria.
“We also recognise the important role we play in funding projects that secure energy needs now and into the future and we take very seriously the role we play in in transitioning to a low carbon economy. We remain very active in the clean energy sector and since October we have committed over $1 billion in finance to renewable energy generators globally,” he said.
This public offshore green bond, the first for an Australian bank, demonstrates NAB’s commitment to undertaking environmental financing activities of $18 billion by 2022.
NAB Group Treasurer, Shaun Dooley, said: “This green bond broadens NAB’s investor base and supports diversification of the portfolio, providing access to an EUR denominated green bond market estimated to exceed EUR60 billion.”
Like NAB’s inaugural green bond in 2014, this green bond is certified under the Climate Bonds Standard and will also be consistent with the International Capital Market Association Green Bond Principles.
Proceeds from the bond will refinance renewable energy and low carbon transport projects and assets in the UK, Europe, Australia and the Americas, such as wind and solar energy generation, and electrified rail infrastructure including electric rolling stock.
The renewable energy assets earmarked for refinancing by this bond are expected to have an installed capacity of approximately1.1 gigawatts in aggregate[1] – this is estimated to represent avoided greenhouse gas emissions of around 1.69 million tonnes annually as carbon dioxide equivalents[2].
About Impact Investment
Impact investment is a developing global market, 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. NAB is the founding partner of Impact Investing Australia and recently committed $2 million to support organisations in delivering finance solutions for important social issues.
[1] This figure refers to the design capacity rather than the installed capacity for one asset, as it is currently under construction.
[2] Avoided carbon emissions were calculated using DEFRA’s 2016 GHG Conversion Factors for UK electricity.
