The funds will support government-backed initiatives, including green hydrogen hubs, community batteries, clean transport and biodiversity conservation programs.
The Australian Office of Financial Management (AOFM) oversaw the bond issue, which was oversubscribed with over $22b in bids from 105 investor institutions across Australia, Asia, Europe and North America.
Treasurer Dr Jim Chalmers says that this investment will advance Australia’s sustainability objectives and enhance its global competitiveness.
“The global energy transformation represents a golden opportunity for Australia and this bond is pulling more global and domestic green capital into financing that opportunity,” he says.
“Demand for the bond confirms Australia is a go‑to destination for international green capital.”
Dr Chalmers emphasises that the green bond will aid in climate change mitigation and adaptation.
“The projects supported by the bond will deliver significant environmental benefits, including lowering greenhouse gas emissions, increasing Australia’s renewable energy production and bolstering our biodiversity conservation, restoration and adaptation,” he says.
Domestic investors contributed the majority of the investment (65%), along with significant contributions from the United Kingdom (12%), Europe (11%), and Asia excluding Japan (8%). Fund managers were the predominant investors (63%), followed by hedge funds (11%), balance sheet banks (10%), and trading banks (9%).
The joint lead managers for the bond issue were Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank Limited, UBS AG – Australia Branch, and Westpac Banking Corporation.