(3 August 2021 – Australia) ANZ is releasing a new Sustainability-Linked Derivative product to support customers based across Australia, Hong Kong, Japan and Singapore achieve sustainability objectives.
The new derivative product includes Swaps, Forwards, Cross Currency Swaps, Interest Rate and Foreign Exchange (FX) Options executed alongside Sustainability-Linked Bonds or Sustainability-Linked Loans.
A Sustainability-Linked Derivative has a pricing component tied to the sustainability targets of the underlying Bond or Loan. The group is seeking to launch the product in other major financial markets in Q4 2021.
ANZ has an A$50 billion 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. ANZ closed Australia’s first Sustainability-Linked Loan in 2018 as well as the first Sustainability-Linked Bond in the Australian dollar bond market in late Q2 2021.
“ANZ is among very few banks globally to offer Sustainability-Linked Derivatives, which is a natural evolution of the sustainable finance market. This latest sustainable finance-related offering broadens our suite of products and services for our customers, in line with increased demand we are seeing across all industries and market segments” commented ANZ Head of Sustainable Finance, Katharine Tapley.