Investors welcome Australia’s first green bond issuance
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Australia is establishing a series of green bonds known as a “sovereign green bond curve“. This involves issuing bonds designated to finance projects with positive environmental impacts, such as renewable energy or sustainable infrastructure.
It has recently launched its first green bond issuance, amounting to approximately $4.7 billion. These bonds will mature in June 2034.
Despite ongoing concerns about Australia’s efforts to reduce carbon emissions, investors have responded positively to the country’s green bond plans.
Australia intends to follow this initial issuance with additional sales of green bonds at different maturity dates. This strategy aims to develop a “green yield curve,” similar to other countries like Germany and France.
Read more: Green bond sales hit record $54.7 billion in February, marks busiest month ever
The issuance adds to a record $294 billion worth of green bonds sold globally by governments and corporations this year, an increase of 12% over the same period in 2023, according to Bloomberg data.
Investors are eager for additional sustainable debt maturities to become accessible. Malika Takhtayeva, sustainable fixed income lead in London at BNP Paribas Asset Management, highlighted that a strong bond framework and the issuance of follow-up tenors contribute to their positive outlook on Australia’s first green bond.
In an interview with Bloomberg, she added, “We want to see this building a curve. In some cases, we’ve seen sovereigns issuing just one green bond, and that’s it. This is basically marketing.”
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