INVESTMENT BANKING | Staff Reporter, Australia

BNP Paribas floats Australia's first climate-linked green bond

The bond adds to the $350b in green bonds to be issued this year.

BNP Paribas has issued Australia’s first green bond linked to the performance of an index which traces companies likely to benefit from the country’s shift to a low-carbon economy, reports Reuters.

On 31 July, BNP sold $101.12m (A$140m) of eight-year bonds that pay a fixed coupon plus a potential return tied to the performance of a climate transition index, investors said.

The ‘A+’-rated bond adds to the $350b in green bonds expected to be issued globally this year.

Investors will receive an undisclosed fixed coupon linked to BNP Paribas’ green bond programme plus a potential “green premium” from the performance of the new Australian index. BNP will use the proceeds to invest in certified green projects and hedge the exposure to the index.

Here’s more from Reuters.

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