The bond has been certified under the Climate Bonds Standard; a FairTrade-like labeling scheme for bonds that allows investors to easily prioritise ‘climate-smart’ investments.
The bond raised A$300 million and will fund a portfolio of seventeen wind and solar energy farms. It is the first time an Australian issuer has brought a green bond to the local market. The bond's compliance with the Standard was confirmed by Climate Bonds’ approved verifier DNV-GL.
NAB Group Executive for Product & Markets, Antony Cahill, said the climate bonds placed the bank at the forefront of product innovation and environmental financing. Mr Cahill said:
King & Wood Mallesons has advised National Australia Bank Limited on its first ever “green” bond issuance.
“This provides investors the opportunity to invest in a bond with the same features of any senior, unsecured NAB bond – but with the additional benefit of being dedicated to financing climate change solutions. This deal reinforces NAB’s position as the largest debt financier of renewable energy in Australia, provides the sector with a new funding source, and highlights our market-leading environmental solutions credentials.”
“The launch also demonstrates the key role debt markets play in supporting the growth of new markets and financing a low carbon economy, and raises the profile of the green bond asset class in Australia.”