GSS issuance in time and numbers
KangaNews has been tracking the progress of Australian and New Zealand sustainability labelled debt instruments since the market began, including coverage of groundbreaking transactions and keeping extensive issuance data in the KangaNews deal database. A timeline of key developments and data points illustrates market progress over the years.
Laurence Davison Head of Content KANGANEWS
Global developments are listed in blue.
Australian developments are listed in black.
New Zealand developments are listed in orange.
Job titles are accurate to when comments were made.
MARKET TIMELINE
World Bank prices the first Australian dollar green bond, for A$300 million
Lead managers: RBC Capital Markets, Westpac Institutional Bank
“If investors are offered a product which meets all their normal investment criteria and also achieves sustainability goals, there can be a lot of interest. [But] there is no single understanding of ‘green’, and in this context it is important for investors to understand how any product fits with what their own stakeholders want to achieve."
Heike Reichelt Head of Investor Relations and New Products World Bank
April 2014
June 2014
International Capital Market Association publishes Green Bond Principles as “voluntary best practice guidelines”.
National Australia Bank prints A$300 million in Australia’s first domestic green bond
Lead manager: National Australia Bank
“The domestic investor base has evolved since we started looking at a transaction – I don’t think we could have done a deal as large as this a year ago, and I think in a year’s time the market will have grown further. Pricing was in line with our senior curve – this was a requirement for us, and we feel it was definitely achieved.”
Eva Zileli Head of Group Funding National Australia Bank
December 2014
March 2015
KangaNews hosts Australia’s first Green Bond Conference
Sponsor: RBC Capital Markets
“This is not a market driven by strong, dedicated, green-bond mandates. There are only a few dedicated green-bond funds, and we actually counsel against them because we are a little worried that they may not always be able to get the best pricing outcomes if they are very restricted. What we are more interested in is switching from existing funds.”
Sean Kidney Chief Executive Climate Bonds Initiative
Poland is the first sovereign green-bond issuer, with a €750 million transaction.
December 2015
January 2016
UN adopts the 17 Sustainable Development Goals.
FlexiGroup includes A$50 million green tranche in a new ABS deal – Australia’s first green securitisation
Arranger: National Australia Bank
Lead managers: Commonwealth Bank of Australia, National Australia Bank
“Market dynamics drove the pricing outcome on FlexiGroup’s green note. But we are hopeful that, over time and as the depth and issuance volume of green bonds including green ABS grows, there is price delineation between green and nongreen tranches.”
Lionel Koe Director, Securitisation National Australia Bank
April 2016
July 2016
Treasury Corporation of Victoria prices A$300 million in Australia’s first semi-government green bond
Lead manager: National Australia Bank
“For the development of the market I think it is important for issuers and investors alike that we minimise barriers. If investors or issuers start demanding a premium it will inhibit the market’s growth.”
Justin Lofting General Manager, Treasury Treasury Corporation of Victoria
Australia’s first social bond prices: a A$500 million transaction from National Australia Bank
Lead Manager: National Australia Bank
“Through the process we felt it was vital to be able to articulate the purpose of the bond and how it would deliver on this purpose. The use of third-party opinion really added to the strength of this message, which also allowed investors to have certainty and comfort in advance. Most of all, we couldn’t risk an unsuccessful transaction or one that didn’t pass the reputational or credibility tests.”
David Jenkins Director, Capital Financing National Australia Bank
Investa Office Fund prices Australia’s first corporate green bond, a A$150 million deal
Lead manager: ANZ
“Commercial property tends to be built to at least five-star green levels in the current environment, so the use of green bonds as a financing mechanism in this sector is a logical development.”
Katharine Tapley Head of Sustainable Finance ANZ
March 2017
June 2017
International Capital Market Association publishes the Social Bond Principles and Sustainability Bond Guidelines, updating guidance for issuers of social bonds and sustainability bonds.
More label diversity as Australian Catholic University prices A$200 million in Australia’s first sustainability bond
Lead Managers: National Australia Bank, UBS
“We initially considered bringing a green bond but following NAB’s social-equality gender bond we recognised that our philosophies encompassed the ideologies of both social and green bonds. When the new Sustainability Bond Guidelines were released in June, we found a close alignment with ACU’s mission of social inclusion, and research and development, and our desire to build sustainable buildings.”
Scott Jenkins Chief Financial Officer Australian Catholic University
International Finance Corporation brings the green bond to New Zealand with NZ$125 million deal
Arranger: BNZ
Lead Managers: ANZ, BNZ
“We were very happy with the fact that domestic banks and fund managers bought a large proportion of the transaction. It is only because the bond is green that some of these accounts were comfortable to go to 10 years.”
Flora Chao Senior Funding Officer International Finance Corporation
July 2017
February 2018
National Australia Bank prints A$300 million in first-ever Australian green RMBS tranche
Arranger and Lead Manager: National Australia Bank
“Price tension on green notes really comes from having dedicated green asset-backed investors with specific demand for these assets. We need more supply in Australia for investors to justify establishing specific green funds – especially for securitisation.”
Eva Zileli Head of Group Funding National Australia Bank
The inaugural KangaNews Sustainable Debt Summit takes place in Sydney
Headline sponsors: ANZ, RBC Capital Markets, TD Securities, Westpac Institutional Bank
“The minds of bond investors are beginning to tilt toward those of equity investors, in that they are starting to think about where a company may be in 15 years – even if they only hold a five-year bond.”
Jeff Grow Executive Director UBS Asset Management
March 2018
June 2018
Auckland Council prints NZ$200 million in New Zealand’s first domestic green-bond deal
Lead manager: ANZ
“There is a huge push, nationally and locally, for action on climate change in New Zealand. With this transaction we can point to the exact purpose and direction of the funds, which reinforces our commitment to a low-carbon and climate-resilient future.”
Alec Tang Corporate Sustainability Lead Auckland Council
New South Wales Treasury Corporation green bond takes cumulative Australian dollar labelled issuance past A$10 billion.
November 2018
February 2019
Contact Energy’s NZ$100 million print is New Zealand’s first corporate green bond
Lead managers: ANZ, BNZ, Deutsche Craigs
“With more supply there is likely to be more incentive for institutional investors to dedicate funds to green products. Ultimately, though, those institutional investors are responding to demands from their clients and society in general, so it is reflective of a broader push to invest in outcomes that are good for society.”
Louise Tong Head of Capital Markets and Tax Contact Energy
Italy's ENEL prints the first-ever sustainability-linked bond deal, for US$1.5 billion.
September 2019
November 2019
Another New South Wales Treasury Corporation deal – a sustainability bond – carries Australian labelled issuance past A$10 billion for the year.
International Capital Market Association publishes the Sustainability Linked Bond Principles.
June 2020
July 2020
EU taxonomy regulation introduced.
International Capital Market Association publishes the Climate Transition Finance Handbook.
December 2020
June 2021
Wesfarmers debuts the sustainability-linked bond in Australia with a A$1 billion transaction
Sustainability coordinators: ANZ, BNP Paribas, Westpac Institutional Bank
Lead Managers: ANZ, BNP Paribas, Commonwealth Bank of Australia, National Australia Bank, Westpac Institutional Bank
“While green-bond assets have to be designated and accepted as green they would not necessarily represent the diversity of our business. We could theoretically have issued a green bond to finance a specific asset without reference to sustainability issues in the rest of the group.”
Luigi Mottolini Executive General Manager, Group Finance Wesfarmers
New Kommunalbanken Norway green Kangaroo bond takes cumulative Australian dollar labelled issuance past A$50 billion.
Queensland Treasury Corporation prices a A$3 billion green-bond – the largest labelled bond print in Australia to date
Lead managers: ANZ, Commonwealth Bank of Australia, Deutsche Bank, UBS
“ESG in Australia is undersupplied and it feels like every investor is allocating to this part of the market. As far as QTC is concerned, this was a very well distributed deal that also features a pricing and a volume benefit. Issuing in green format helped.”
Craig Johnston Vice President, Australian and New Zealand Dollar Syndicate Deutsche Bank
September 2021
March 2022
Spark adds sustainability-linked bonds to New Zealand funding menu with NZ$100 million deal
Arranger and Sustainability Coordinator: ANZ
“Climate change is centre stage for executives and boards. The interest to align ESG ambition with financial instruments is seeing a significant upswing in New Zealand and we are confident further SLB issuance will follow.”
Dean Spicer Head of Sustainable Finance, New Zealand ANZ
International Finance Corporation’s NZ$300 million social bond takes total New Zealand labelled issuance past NZ$10 billion for the year, for the first and – so far – only time.
New Zealand Debt Management prices Australasia’s first sovereign green bond in NZ$3 billion syndication
Lead managers: ANZ, BNZ, Deutsche Bank, UBS, Westpac Banking Corporation New Zealand Branch
“We were able to revise pricing early in the process, which meant some initial bids fell away early on. But they were replaced by high-quality real-money names, including some green-focused and some new to our curve.”
Matthew Appleby Acting Head of Funding, Investment and Markets New Zealand Debt Management
November 2022
April 2023
Federal treasurer, Jim Chalmers, confirms the Australian Office of Financial Management will issue green bonds
“The credibility issues are unfortunately significant. There is a risk that the domestic market underappreciates the extent of international negative perception about Australia’s enabled emissions. Significantly more demand would likely be associated with additional asset allocation to the sector by end investors and asset owners – that is, an inflow of new money and not just pricing preferences of existing capital allocated to the sector.”
Tamar Hamlyn Principal and Portfolio Manager, Interest Rate Strategies and Macroeconomics Ardea Investment Management
New NBN Co green bond takes year-to-date labelled issuance past A$20 billion for the first time.
August 2023
February 2024
World Bank’s latest Kangaroo Sustainable Development Bond takes Australian labelled issuance total to A$100 billion.
MARKET DATA
