NAB has announced it has supported NBN Co in issuing its first green bond to help reduce NBN Co’s emissions and support its transition to a low carbon economy.
The green bond issued by NBN Co will be the first of its kind for an Australian telco sector or Government Business Enterprise. The finance will be used by NBN Co for eligible green projects such as those to reduce its annual energy usage, move to electric or hybrid vehicles and to purchase 100 per cent renewable electricity.
NAB Group Executive, Corporate and Institutional Bank, David Gall said NAB recognises the important role the bank plays in helping finance the nation’s pursuit towards reducing emissions and addressing climate change.
“This bond is an important milestone for the Australian public and telco sectors, and we’re proud to be playing an important role in bringing yet another first green bond to the Australian market,” Mr Gall said.
“NAB is at the forefront of product innovation and environmental financing that is helping our customers in their transition to net zero.”
NAB has also closed six Environmental, Social, and Governance (ESG) linked derivatives in the European market and one in Australia, and one ESG-linked foreign exchange derivative.
Additionally, NAB has now issued five Climate Bond Initiative (CBI) certified green bonds and one CBI certified green Residential mortgage-backed securities (RMBS) tranche since becoming the first Australian issuer of a Certified Green Bond under the Climate Bonds Standard in 2014.
In addition to helping businesses with ESG financial innovation:
- NAB has joined the UN-convened Net Zero Banking Alliance and is aligning its lending portfolio to net-zero emissions by 2050.
- NAB is the leading Australian bank provider of project finance to the global renewables segment[1]. Renewables represent 75% of our total exposure to energy generation.
- NAB has set a cap on our Oil and Gas lending at USD$2.4 billion. We are the first major Australian bank to do so publicly and transparently. This cap will reduce from 2026 through to 2050, aligned to International Energy Agency’s Net Zero Emissions 2050 roadmap.
- NAB is providing training to its bankers to ensure they understand this complex topic and can help our customers with financial innovation and advice. NAB wants the best climate bankers supporting these conversations with customers.
What are Green Bonds?
- Green bonds raise funds for new and existing projects which deliver environmental benefits, and support the transition to a more sustainable economy.
- These projects can include renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change.
- Green bonds provide investors the opportunity to invest in a bond with the same features of any senior, unsecured bond – but with the additional benefit of being dedicated to financing climate change solutions.
[1] Rankings based on cumulative IJGlobal League Table data from 1 Jan 2010 to 31 March 2022, MLA, Renewables.
