(25 March 2024 – Australia) Fund managers are eagerly anticipating the first June 2034 green Treasury bond issued by the Australian Office of Financial Management (AOFM) on behalf of the Australian government in Q2 2024.
CBA, Deutsche Bank, NAB, UBS AG and Westpac have been appointed as Joint Lead Managers (JLMs) for the initial public offering (IPO) of the first June 2034 green Treasury bond.
Rose Mary Petrass reports for FSSustainability that financing eligibility criteria includes strong alignment with the Australian government's three key green goals including climate change mitigation, climate change adaptation and improved environmental outcomes.
“The Treasury Green Bond has been eagerly awaited. Treasury has developed a robust green bond framework aligned with international standards that should ensure bond proceeds will be directed toward projects that genuinely contribute to sustainability objectives” said Betashares Responsible Investments Director, Greg Liddell.
“For ethical and responsible investors, this will ensure capital is deployed to projects that align with their values, while also achieving an investment return. This issuance of a Treasury Green Bond will allow ethical and responsible investors to add exposure to 10-year Australian Treasury bonds, while also ensuring the proceeds are used in ways that align with their values.”
“For the first time, ethical and responsible investors will be able to add this fixed income building block to their portfolio through funds like our Sustainability Leaders Diversified Bond ETF. Importantly, the issuance of a Treasury Green Bond will create increased global interest in Australian dollar denominated green bonds and encourage State Governments and corporates to expand their own green bond programs.”