Australia issues first green bonds worth billions of dollars

Australia has issued its inaugural $7 billion green bond, signalling a significant advancement in the country’s sustainable finance market.

This landmark issuance, aimed at financing projects that support climate change mitigation and adaptation, attracted substantial global interest, underscoring Australia’s potential as a leading destination for green investments, Caliber.Az reports, citing foreign media.

Australia's first $7 billion green bond marks a major milestone in the nation’s journey towards sustainable finance. The bond, issued by the Australian Office of Financial Management (AOFM), was met with overwhelming demand, receiving $22 billion in bids from 105 investor institutions across Australia, Asia, Europe, and North America.

“This bond is pulling more global and domestic green capital into financing that opportunity,” said an official, highlighting the bond’s role in attracting international investment.

The funds raised will be directed towards projects that are integral to the global economy, fostering job creation nationwide. Specifically, the projects include green hydrogen hubs, community batteries, and clean transport initiatives, along with biodiversity conservation programs.

“The projects supported by the bond will deliver significant environmental benefits, including lowering greenhouse gas emissions, increasing Australia’s renewable energy production, and bolstering our biodiversity conservation,” the official added.

The Albanese Labor Government's Future Made in Australia plan, along with last month’s budget, emphasizes encouraging private sector investment in net zero initiatives. The green bond offers global investors the chance to support government-backed projects crucial for climate change mitigation and improved environmental outcomes.

“Demand for the bond confirms Australia is a go-to destination for international green capital,” stated the AOFM. This sentiment reflects the confidence investors have in Australia’s commitment to sustainable development and its alignment with the United Nations Sustainable Development Goals.

The successful issuance of this green bond not only showcases Australia’s dedication to achieving net zero emissions by 2050 but also highlights the country’s ability to foster a thriving environment that benefits both the economy and the community.