National Australia Bank’s launch of the Victorian Government Green Bonds, issued on 19 July, has raised $300 million, helping to finance and refinance Victorian State investments in energy efficiency, renewable energy generation, low carbon public transport and energy efficient water treatment.
The ground-breaking green bond, an Australian and world-first, was issued by the Treasury Corporation of Victoria (TCV). NAB is the Sole Arranger, Green Bond Structuring Agent and Lead Manager for TCV on the issue.
Projects that will benefit from the transaction will include LED traffic lights, hydroelectric power stations, low-carbon buildings at Federation Square, the Melbourne Metro Tunnel, the Mernda Rail extension and the development of a large-scale renewable energy power station.
Executive General Manager Capital Financing, Steve Lambert, said the landmark transaction further demonstrates NAB’s long-term commitment to green bonds and renewable energy.
“We are very proud to have led this green bond, which will help finance a number of energy efficient, critical infrastructure projects throughout Victoria.
“NAB is committed to helping finance $18 billion of renewable energy projects over the next seven years and this world-first for NAB in the green bond market is another step towards achieving that goal.
“This is the world’s first Climate Bond Standard Certified Green Bond issued by a semi-government authority, and the first Australian green bond issued by a government.
“This transaction follows our own inaugural Climate Bond Certified issuance in 2014 as well as the world first Climate Bond Certified Green ABS securitisation transaction for FlexiGroup Limited in April this year, for which NAB was the Sole Arranger and Joint Lead Manager,” he said.
Victorian Treasurer, Tim Pallas, said the transaction will allow investors to play a major role in delivering significant renewable energy projects and environmentally-friendly infrastructure to Victoria.
“Victorian Green Bonds offer investors the confidence of a AAA-rated government security, with the assurance that the funds will be used for ethical investments that deliver important environmental or climate change outcomes,” he said.
Social Innovation at NAB
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 impact investment plays an integral role in building a strong economy and delivers innovative financial solutions for current and prospective customers to demonstrate the potential ways impact investment can be used to address long-standing societal issues. NAB is the founding partner of Impact Investing Australia and has committed $2 million to capacity building grants to support mission-led organisations seeking to scale their impact.