One of Australia’s major lenders will, for the first time, attach an environmental guarantee to its funding.
ANZ has announced plans to issue its first green bond, which it said was in response to investor demand and in keeping with its support for transitioning to a lower-carbon economy.
Proceeds will be used to finance a portfolio of existing ANZ loans that directly contribute to developing low-carbon industries, technologies and practices, according to ANZ.
The portfolio includes loans to wind power and solar projects and Green Star-rated commercial property buildings in Australia, New Zealand and parts of Asia.
Projects in the geothermal power and fuel-efficient transportation sectors may also be considered in the future.
ANZ said the bond has been certified by the Climate Bonds Initiative (CBI), an investor-focused, not-for-profit organisation.
Ernst & Young has independently verified the bond against standards issued by the CBI and will review compliance on an annual basis until the bond’s maturity, according to ANZ.
ANZ group treasurer Rick Moscati said the green bond would help deliver on the bank’s commitment to deploy capital for the transition to a lower-carbon economy.
“Importantly, the continued development of Australia’s green bond market should enable ANZ to increase funding allocated to green projects in the future,” he said.
Katharine Tapley, director of sustainable finance solutions in ANZ’s Global Loans business, said the bank was pleased to be using its position as a financer to the renewables and commercial buildings sectors to support the development of the green bond market.
“Likewise, our customers whose projects are included in the bond have been overwhelmingly supportive of this move,” she said.
ANZ will be the sole lead arranger for the green bond transaction.