The ANZ bank will return to the Green, Social and Sustainability (GSS) bond market in Australia, after having issued its inaugural Green Bond back in June 2015.
The bank has announced the issue of an AUD1.25 billion Tier 2 capital bond linked to the United Nation’s Sustainable Development Goals (SDG), the first bank-issued SDG Bond in Australia’s domestic bond market.
ANZ Group Treasurer Adrian Went said in a statement: “Investor demand for ANZ’s latest issue was strong following the maturity of our 2015 Green Bond earlier this year.”
The bond matures 26 February 2031, with the first optional redemption date of 26 February 2026. The bond pays a floating rate of interest with a coupon of 3mth BBSW +185bps.
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“The transaction uses our SDG Bond Framework which links our asset base to certain United Nations’ Sustainable Development Goals, giving our investors a unique opportunity to drive positive environmental, social and sustainability outcomes while earning an attractive rate of return,” Mr Went said.
The bond is ANZ’s third issuance under its SDG Bond Framework which has been in place since February 2018. The bank now has around AUD4.0 billion-equivalent of SDG Bonds on issue, having issued its first and second SDG Bonds in Europe, including its first Tier 2 Capital SDG Bond in November 2019.
ANZ has an AUD50 billion SDG-linked commitment to fund and facilitate sustainable solutions for customers by 2025, including initiatives to help improve environmental sustainability, increase access to affordable housing and promote financial wellbeing.
The announcement marks the first labelled GSS bond issued by a major bank in Australian dollars since 2017.