01Performance

CEFC ANNUAL REPORT / 2015–16

Westpac Climate Bond

The CEFC made its largest commitment to a climate bond to date, committing $90 million as a cornerstone investor in Westpac’s first climate bond, a $500 million offering certified by the Climate Bonds Initiative.

Project scope

The bond, issued in May 2016, will finance a $1 billion Australian-based clean energy portfolio, including low carbon commercial buildings and renewable energy generation projects. The commercial properties are rated five stars or higher under NABERS and the renewable energy projects have a total capacity of some 2,800GWh per annum.

Progress report

The Westpac bond commitment builds on the CEFC’s continuing investment in climate bonds, as an important source of new capital for clean energy investments. The CEFC was also a cornerstone investor in National Australia Bank’s inaugural certified climate bond in 2014 and also invested in FlexiGroup’s certified green securitisation bond issued in April 2016.

Looking to the future

The growing domestic climate bond market is attracting private sector finance to unlock new investment in the clean energy sector. The CEFC’s collaboration with co-financiers and project proponents is aimed at creating continued momentum in the development of a green investment class in the Australian capital markets to support the investment levels required to meet the RET.

The strong response to the Westpac Climate Bond reflects the continuing growth we’re seeing in investors’ and customers’ appetite for products that have a positive impact on the economy and the environment. Westpac Group Head of Sustainability
Siobhan Toohill