ANZ has launched and priced its first Sustainable Development Goals (SDG) bond in the European wholesale debt capital markets.
The bond raised €750 million to fund ANZ loans and expenditures that directly promote nine of the 17 SDGs.
According to ANZ, “the five year fixed rate bond was priced at a spread of 15 basis points over the swap rate, with a yield of 0.643%. It was primarily distributed to European institutional investors. ANZ, HSBC, BNP and Barclays acted as joint bookrunners on the transaction.”
The proceeds are intended to support projects offering broad social, economic and environmental benefits including funding for hospitals, schools, green buildings, clean water, public transport systems or renewable power plants, ANZ said.
“ANZ is responding to growing fixed income investor interest in using the SDGs as an impact measurement for their portfolios.,” said Mostyn Kau, ANZ head of group funding. “The strong demand for this transaction highlights the growing number of sustainable mandates within the institutional investment community – we expect this trend to continue.”
This is the first Euro SDG bond globally, noted Katharine Tapley, ANZ head of sustainable finance.
“Our ambition is to be a leading issuer and arranger in green and sustainability bond markets, in turn supporting our customers and the broader community,” Tapley said.
ANZ issued its inaugural AU$600 million Green Bond in 2015. In 2016, ANZ Chief Executive Officer Shayne Elliott became a signatory of the CEO Statement of Support for the SDGs. ANZ noted that last year, it increased its commitment to fund and facilitate low carbon and sustainable solutions, lifting its original target of $10 billion by 2020, to at least $15 billion by 2020.