The government of Australia has successfully launched its first-ever green bond, raising AUD 7 billion (USD 4.67bn/EUR 4.28bn) and garnering significant investor interest, as revealed in a media release.
Issued by the Australian Office of Financial Management (AOFM) on behalf of the government, the bond attracted bids exceeding three times the initial offering, totaling AUD 22 billion from 105 investor institutions worldwide, spanning Australia, Asia, Europe, and North America. The bond, set to mature in June 2034, marks a notable milestone in Australia's sustainable finance landscape.
Previously appointed Joint Lead Managers (JLMs), including Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank Limited, UBS AG, Australia Branch, and Westpac Banking Corporation, facilitated the issuance process.
Investors participating in the green bond initiative will contribute to government-backed projects aimed at addressing climate change mitigation, adaptation, and environmental enhancement within Australia. Proceeds from the issuance will be allocated to various initiatives, including the development of green hydrogen hubs, community batteries, and sustainable transportation infrastructure, alongside biodiversity conservation programs.
The release of the government's green bond framework in December 2023 laid the groundwork for this milestone initiative, reflecting Australia's commitment to advancing environmentally conscious investments.
