November 8, 2018
November 14, 2018

NSW Government has successfully raised a record $1.8 billion in capital through the first ever issue of Green Bonds, heralding a new era of investment in the State’s future.

NSW’s Sustainability Bond release set a new record on the Australian market raising six times more than the Victorian Government’s $300 million release in 2016 and double that of the Queensland Government’s $750 million issuance last year.

The Government bonds, issued under the newly established Sustainability Bond Programme, will be directed into projects that will deliver environmental and social benefits for the people of NSW.

Treasurer Dominic Perrottet said the stellar result has enabled the Government to attract investors who can contribute capital to accomplish more than just infrastructure goals.

“This approach to raising capital diversifies our investor base and allows us to deliver on environmental outcomes alongside important infrastructure,” Mr Perrottet said.

“With demand for sustainable investments increasing rapidly across the world, this is a great opportunity for the State to showcase its ongoing commitment to addressing environmental risks and focusing on Environmental, Social and Governance (ESG) themes.”

“This result demonstrates strong investor confidence in the State’s economy and the NSW Government’s strong financial management of the economy.”

The bonds have been issued by NSW Treasury Corporation (TCorp), the State’s financial markets provider, and complement existing general purpose bonds already issued by TCorp.

TCorp has raised A$1.8 billion in 10 year funding which will mature in November 2028.

While Sustainability Bonds are relatively new, they will continue to gain momentum as governments, corporations, and investors place a greater emphasis on environmental and social outcomes.

Minister for the Environment Gabrielle Upton said the introduction of Green Bonds was just another example of the NSW Government leading the way when it came to sustainable projects.

“Initiatives like this show we are willing to think outside the square when it comes to new investment opportunities which will not only fund worthy projects but also enhance and protect the environment,” Ms Upton said.

“This demonstrates the Government’s continued commitment to sustainable development that is environmentally and social responsible.”

  • The establishment of the Sustainability Bond Programme is the result of a collaborative effort that includes key representatives from TCorp, NSW Treasury, NSW Office of Environment and Heritage and NSW Office of Social Impact Investment.
  • The inaugural Green Bond issue under this programme has been designed to meet International Capital Market Association Green Bond Principles, has received external verification from EY and has been certified by the Climate Bond Initiative.

Proceeds from this Green Bond transaction are allocated to fund an eligible portfolio of projects and assets that support the State’s environmental aims and transition to a more climate resilient economy.

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