NAB leads the way in supporting ‘green’ projects around the world



NAB continues to lead in global infrastructure and renewable project financing, offering new and innovative ways to support companies that deliver and support ‘green’ projects around the world.

Last week, NAB finalised two landmark arrangements with one of the UK’s largest environmental utility infrastructure companies, Pennon Group.

“We play an important role in financing the global transition to a low carbon economy and supporting sustainable development, so we’re backing major infrastructure projects around the world that have strong environmental and socially sustainable outcomes,” NAB Chief Customer Officer of Corporate and Institutional Banking, Mike Baird said.

“Green Leases are a new approach to financing green infrastructure, and we’re pleased to be able to offer it to our customers. It’s an example of how NAB, as a major financier, is continually looking for new and innovative ways to support our customers.”

NAB has provided Pennon Group with a five-year Environmental, Social and Governance (ESG) linked Term Loan of £100 million. The loan requires the Pennon Group to meet ESG/Sustainability objectives and key performance indicators based on an ESG Index issued by independent ratings organisation, Sustainalytics, whereby Pennon Group receives a reduced margin on the loan if targets are achieved.

NAB has also provided Pennon Group, through its subsidiary South West Water Limited, a ten-year £30 million Green Lease which will finance the state-of-the-art Mayflower Water Treatment Works in Plymouth in the UK, and other sustainable water and wastewater management assets. The Mayflower will use cutting-edge treatment processes to provide a secure, high-quality drinking water supply for the wider Plymouth area.

The Green Lease has been developed in alignment with Pennon’s Sustainable Financing Framework, which was prepared under the new Loan Market Association guidelines.

In line with NAB’s global focus on infrastructure and renewables financing, NAB also recently settled its first public USD Green Bond issuance, and first United Nations Sustainable Development Goals (SDGs) Green Bond – the first of its kind to be issued by an Australian major bank.

NAB SDG Green Bonds provide an opportunity for investors to allocate capital towards NAB-funded projects that support the transition to a low carbon economy, and contribute towards meeting the United Nation’s SDGs.

The NAB SDG Green bond attracted a diverse range of socially responsible Investors with ESG mandates, as well as regular ‘non-green’ investors.

In 2017, NAB committed to increasing environmental financing for customers from $18 billion by 2022, to $55 billion by 2025. This includes $20 billion to support green infrastructure, capital markets and asset finance, and $35 billion of lending to support the development of 6-star residential mortgages. As at 31 March 2018, NAB has provided $17.5 billion towards this commitment.



Related Articles

  • Half Year Results

Video: NAB CEO Andrew Irvine discusses 2024 Half Year Result

In this video interview NAB CEO Andrew Irvine reflects on NAB’s 2024 Half Year Results, economic conditions and the bank’s strategic direction.

  • 02.05.2024
  • Time to read 1 min read
  • Half Year Results

NAB announces 2024 Half Year Results

NAB has today released its 2024 Half Year Results to the market.

  • 02.05.2024
  • Time to read 1 min read
  • Climate

Chaucer leads industry with ESG balanced scorecard

Senior executive at the London-based re/insurer Chaucer Group, Simon Tighe, says insurance and reinsurance is one of the largest investors of capital in the world, and there’s not another market or industry with the impact or ability to incentivise clients to make themselves more sustainable.

  • 12.04.2024
  • Time to read 5 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.