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ANZ Prices first €750m SDG Bond

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  • Economy
  • Resources

 

Phoebe O' Sullivan, Associate Director, Institutional Communications  |  February 2018

 

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Marks second issuance of SDG bond globally; reflects commitment to finance projects benefitting communities and the environment

ANZ today announced it has launched and priced its first Sustainable Development Goals (SDG) bond in the European wholesale debt capital markets, raising €750 million to fund ANZ loans and expenditures that directly promote nine of the United Nations’ 17 SDGs.  

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 Head of Group Funding Mostyn Kau said: “ANZ is responding to growing fixed income investor interest in using the SDGs as an impact measurement for their portfolios. The strong demand for this transaction highlights the growing number of sustainable mandates within the institutional investment community – we expect this trend to continue.”

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"ANZ is responding to growing fixed income investor interest in using the SDGs as an impact measurement for their portfolios. The strong demand for this transaction highlights the growing number of sustainable mandates within the institutional investment community – we expect this trend to continue.”
Mostyn Kau  

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ANZ Head of Sustainable Finance Katharine Tapley said: “This bond is the first Euro SDG bond globally and provides an innovative form of funding while driving a deeper and more liquid market for socially responsible investment. 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.”

ANZ issued its inaugural AUD600m Green Bond in 2015, which at the time was the largest climate related bond by an Australian issuer. Since then, ANZ Chief Executive Officer Shayne Elliott became a signatory of the CEO Statement of Support for the SDGs in 2016.

ANZ recently 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.

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“This bond is the first Euro SDG bond globally and provides an innovative form of funding while driving a deeper and more liquid market for socially responsible investment. 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.”
Katharine Tapley  

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Appendix 1: Selected information about ANZ’s SDG bond

 

Tenor:

5 year

Interest Basis:

Fixed Rate

Currency:

Euro

Amount:

€750 million

Ranking:

The bonds are senior medium term notes

Programme:

ANZ’s EMTN information memorandum dated 16 May 2017 as supplemented.  

Denomination:

The bonds will have specified denominations of EUR 100,000 and integral multiples of EUR 1,000 thereafter.

Security Holder Approval:

No security holder approval is required in relation to the proposed issue of the bonds

Listing:

Application is expected to be made by ANZ for the bonds to be listed on ASX as an ASX wholesale debt listing on or about the issue date.

Clearing:

The Notes will not be transferred through, or registered on, the Clearing House Electronic Sub-Register System ("CHESS") operated by ASX Settlement Pty Ltd (ABN 49 008 504 532) and will not be "Approved Financial Products" for the purposes of that system. Interest in the Notes will instead be held in, and transferable through, Euroclear Bank SA/NV or Clearstream Banking S.A.

Selling Restrictions:

No transfers will be made to retail clients (as defined in section 761G of the Corporations Act 2001 of Australia) and no bids or offers may be made on an Australian Securities Exchange trading platform with a value less than A$500,000 (or its equivalent in an alternate currency) and as set out in the ANZ’s EMTN information memorandum dated 16 May 2017 as supplemented.  

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES OF AMERICA

This Media Release is not a prospectus or other disclosure document in relation to the bonds, and does not constitute an offer or invitation for the bonds for issue or sale in Australia.  Bonds are only available for sale to persons in Australia in circumstances where disclosure is not required in accordance with Part 6D.2 or Chapter 7 of the Corporations Act.  The securities have not been, and will not be, registered under the US Securities Act or the securities laws of any state of the United States or any jurisdiction, and the securities may not be offered or sold in the United States or to, or for the account or the benefit of, U.S. persons unless an exemption from the registration requirements of the US Securities Act is available and the offer and sale is in accordance with all applicable state securities laws of any state of the United States.  This Media Release is not an offer or invitation to any U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act")). 

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