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CEFC Finance In Action: Climate Bonds

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Developing a new source of clean energy finance

The CEFC has been a cornerstone investor in eight of the 14 climate bonds issued in Australia since 2013, supporting the growth of this important new channel to increase the flow of clean energy finance. CEFC climate bonds commitments in 2016-17 included:

  • $20 million to the Investa Office Fund inaugural Green Medium Term Note, the first certified Australian dollar green bond issued by an Australian REIT. Proceeds from the $150 million bond issue have been fully allocated against a portfolio of low carbon buildings. 
  • $100 million commitment as a cornerstone investor in CBA’s first climate bond, a $650 million bond linked to a broad portfolio of clean energy assets.
  • $20 million cornerstone commitment to FlexiGroup’s $50 million tranche of 2017-1 Class A2-G notes. The climate-certified bonds have an underlying asset base of residential rooftop solar and priced at a yield 0.03 per cent lower than the remainder of the $265 million issue, which lacked certification.
  • $20 million cornerstone investment in the world’s first university issued certified climate bond. Monash University’s $218 million climate bond is to finance sustainability and clean energy projects.
We’re pleased to have the CEFC as a cornerstone investor in our first climate bond, recognising the important role it plays in nurturing the growth of climate bonds to support the development of the clean energy sector in Australia. Increasing investor awareness will fuel demand for climate bonds, and based on the strong domestic and global pipeline for renewable and low-carbon projects, we expect to see the Australian market grow.
Simon Ling
CBA Managing Director Debt Markets