Powered by MOMENTUM MEDIA
subscribe to our newsletter
NAB launches green mortgage-backed bond

NAB launches green mortgage-backed bond

NAB has arranged a $2 billion residential mortgage-backed security (RMBS) with a $300 million green tranche that meets Climate Bonds Standard criteria.

The $300 million green tranche of the bond is backed by NAB-originated mortgages for Australian residential properties that meet the Climate Bonds Standard criteria for Australian low-carbon residential buildings.

According to NAB, investors in the bond include socially responsible funds and more mainstream investors from Australia and overseas.

Advertisement
Advertisement
This is the latest in a series of green bonds arranged by NAB. Between 2014 and 2018, the bank arranged 10 green bonds, including three issued by the bank itself, a $200 million sustainability bond for the Australian Catholic University in 2017 and a $500 million social bond in 2017.

Former NSW premier Mike Baird, who is now NAB’s chief customer officer for corporate and institutional banking, said that the arrangement was part of NAB’s effort to play a part in “Australia’s transition to a low-carbon economy”.

“This transaction is another small, but important, step in that journey,” Mr Baird said.

The $2 billion RMBS is the first Australian security of its type to meet the criteria for certification under the Climate Bonds Standard by the Climate Standards Board of the Climate Bonds Initiative (CBI).

[Related: Major bank releases largest Australian green bond]

NAB launches green mortgage-backed bond
mortgagebusiness

 

Latest News

The embattled wealth giant has confirmed that its statutory net profit fell by $820 million in 2018, due to costs associated with the royal ...

The non-major bank’s net profit after tax has dropped by 4.7 per cent, coinciding with weaker home lending performance. ...

Regulatory sandboxes may not be the answer for regulating cross-border fintechs, a new report has suggested. ...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The aftermath of the final royal commission report

Is enough being done to ensure responsible lending?