Tuesday 4 August 2020

BNP Paribas issues ‘Australia’s first’ AUD$140m green bond

French bank BNB Paribas has announced the issuance of what is considered to be Australia's first green bond.

This bond is linked to the Australian Climate Transition Index, the first Australian equities index with a specific focus on the 300 largest companies in the country and their decarbonisation efforts.

These companies are responsible for 40% of national emissions and have the potential to significantly contribute to Australia’s emissions profile.

Developed by the bank in collaboration with ClimateWorks, the ESG arm of corporate governance consultant Institutional Shareholder Services, as well as Monash University in Australia, the index uses five climate scenarios to choose companies that support the transition to a decarbonised economy.

The proceeds from the green bond will be invested in green projects.

Pascal Fischer, Head of Global Markets for Asia Pacific at BNP Paribas said: "We are pleased to support climate transition efforts in Australia and bring our European expertise to the development of this innovative climate index."

Anna Skarbek, CEO of ClimateWorks Australia, commented: "We are pleased that this index now enables investors and Australian companies to align their strategies with evidence-based climate transitions."

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