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.”