VoiceOver users please use the tab key when navigating expanded menus


ANZ issues €1 billion Tier 2 SDG bond

ANZ has issued its second Sustainable Development Goals (SDG) Bond in European wholesale debt capital markets, raising €1 billion in Tier 2 capital to fund its lending to sectors such as aged care, education and the environment.

The bond is the first Euro SDG Tier 2 bond issued by any bank globally, bringing the total size of ANZ bonds on issue in Green and SDG formats to $A3.4 billion, equivalent.

Priced at a spread of 140 basis points over the mid-swap, the 10-year (with a five-year call) bond was heavily oversubscribed, with orders of more than €2.7 billion from more than 150 European and Asian institutional investors.

ANZ Group Treasurer Adrian Went said the bank’s commitment to sustainability had helped drive interest in the bond.

“The strong market reception was assisted by the important alignment between ANZ’s purpose and our public commitment to sustainable lending,” he said.

“Investors were genuinely supportive of ANZ’s SDG framework, our approach to investor engagement and our market leading disclosures, including impact reporting.”


ANZ’s updated Sustainability Target

The deal comes after ANZ more than tripled its existing sustainable finance commitment earlier in November, creating a new $A50 billion ‘sustainability target’ as part of its drive to help customers transition towards a low-carbon and more sustainability developed economy.

The plan will see the bank expand its five-year $A15 billion ‘low-carbon solutions target’ into an $A50 billion ‘sustainability target’ from October 2019 to September 2025.

Under the new target, ANZ will fund and facilitate at least $A50 billion in sustainable solutions for customers by 2025, including initiatives to help improve environmental sustainability, increase access to affordable housing and promote financial wellbeing.

The bank has already funded over $A19 billion in low-carbon solutions against its $A15 billion 2020 target - a full year ahead of existing plans.

The sustainability target is core to ANZ’s purpose to shape a world where people and communities thrive.

The bank focuses on three priority areas that underpin its purpose – environmental sustainability, housing and financial wellbeing. The sustainability target is the bedrock of its focus on the environment.


SDG bonds are an increasingly popular type of financial instrument aligned with the United Nation’s Sustainable Development Goals. Such bonds are designed to fund or assist in the funding of projects which meet strict criteria around the social and environmental impact.

The Euro SDG bond comes after ANZ signed New Zealand’s first sustainability linked loan (SLL) tied to environmental, social and governance (ESG) metrics in October, as part of a growing number of green finance deals struck by the bank.

Sharon Klyne is Associate Director, Communications at ANZ Institutional

This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.