Australia’s commitment to sustainability has made a significant advancement with the issuance of the nation’s inaugural $7 billion sovereign green bond. This initiative, designed to attract institutional investment for public projects that drive Australia’s net-zero transformation, represents a crucial milestone in the country’s environmental journey and the growth of its sustainable finance markets.
Leading this pivotal project are the National Australia Bank (NAB) and UBS, serving as joint structuring advisors. David Jenkins, the global head of sustainable finance at NAB, anticipates that the pool of eligible green expenditures funded by the green bond will quickly multiply beyond the initial $7 billion issuance now that the necessary framework is in place. Additionally, an Exchange-traded Green Treasury Bond is expected to be available by 2025, facilitating retail investors’ participation in Australia’s green future.