Australian news, and some related international items

The ANZ Bank’s first green bond issuance a resounding success

piggy-ban-renewablesAustralian investors lap up ANZ green bonds THE AUSTRALIAN JOHN CONROY MAY 28, 2015 The ANZ Bank’s first green bond issuance – and Australia’s largest – has been a “resounding success”, the Clean Energy Finance Corporation said, with the CEFC not needing to provide the $75m it had committed to back the issuance.

The $600m ANZ green bond issuance – which has been certified by the Climate Bonds Initiative  – was fully subscribed by private sector investors and will back investment in utility-scale wind and solar as well as green buildings.

About 40% of the green bond funds will go into green building projects in Australian and New Zealand, as well as some parts of Asia, with the remaining 60% to be invested in renewable energy, largely wind and solar, The Fifth Estate reports, with Australian institutional investors making up the majority of subscribers.

The five-year fixed rate bond had a coupon of 3.25% and was rated AA-, the website said. The Fifth Estate also quotes CBI as saying the issuance was actually oversubscribed, at $725m. CEFC CEO Oliver Yates said the “high quality” bonds would expand and diversify the investor base for clean energy.

“Green bonds provide investors with a unique opportunity to invest in renewable energy and energy efficiency through a low-risk, high quality fixed-income product. At the same time, green bonds support long term investment in important low carbon infrastructure projects which can benefit the broader economy,” he said.

He said investors were increasingly seeking additional benefits, such as an environmental or social return……..


May 30, 2015 - Posted by | AUSTRALIA - NATIONAL, business, energy

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