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BNP Paribas issues A$140m green bond linked to Australian Climate Transition Index

BNP Paribas announced the successful issuance of a series of equity-linked green bonds totaling A$140million.

BNP Paribas announced the successful issuance of a series of equity-linked green bonds totaling A$140million, subscribed by the Clean Energy Finance Corporation (CEFC), First State Super (soon to be renamed Aware Super) and QBE Insurance (QBE). The bonds are linked to the first forward-looking climate index in Australia, the Australian Climate Transition Index (ACT Index) and the proceeds will be used to invest in a portfolio of green projects.

The ACT Index uses five “dynamic” climate scenarios, which will continue to be adjusted to reflect future regulatory, technology and social environmental changes. It was jointly developed by BNP Paribas with ClimateWorks Australia, ISS ESG and The Centre for Quantitative Finance and Investment Strategies at Monash University. The index seeks to identify companies likely to perform well in a world undergoing a 2°C transition and to continue to play a part of the Australian economy in a 2°C future. This includes 100 Australian companies that will support the transition, adapt and thrive, or be least affected by the expected changes.

Pascal Fischer, Head of Global Markets for Asia Pacific at BNP Paribas said:

“Having the long-term support of these three major Australian investors indicates a clear willingness and readiness for action among critical sectors in Australia. We are pleased to support climate transition efforts in Australia and bring our European expertise to the development of this innovative climate index.”

Source: BNP Paribas