Australia climate bond first explained

Author: Ashley Lee | Published: 15 Dec 2014

National Australia Bank’s (NAB) A$300 million ($247 million) certified climate bond is the first green bond from an Australian financial institution. It is also the world’s first bank bond to be certified as a climate bond.

NAB’s climate bond is only the second accredited green bond from an Australian issuer. It follows the World Bank’s A$300 million green bond sold in April in the domestic market. Property developer Stockland, the first Australian corporate green bond issuer, came to market with a €300 million ($872 million) seven-year offering in October.

NAB’s deal being denominated in Australian dollars, and sold into the domestic market, demonstrates local demand for an asset class that has become increasingly popular in the US and Europe.

NAB group executive...