The Australian Office of Financial Management has announced plans to issue Australia's inaugural sovereign green bond, a 10-year instrument maturing in June 2034.
The AOFM planned an investor roadshow to market the new bond ahead of the syndicated issue.
FRAMEWORK ALIGNED WITH ICMA GREEN BOND PRINCIPLES
The Green Bond Framework underpinning the transaction was developed in accordance with the International Capital Market Association Green Bond Principles 2021. The framework establishes the categories of eligible green expenditure that proceeds can finance, with the focus on eligible green expenditures aligned with the government's climate goals and already committed to in government budgets and reflected in appropriated expenditure.
The Australian Government Green Bond Framework, published in December 2023, obtained an independent Second-Party Opinion.
The AOFM aimed to achieve broad distribution across the domestic and international investor base.
PROCEEDS TO FINANCE ELIGIBLE NATIONAL CLIMATE EXPENDITURE
Proceeds from the Green Treasury Bond will be used to refinance or finance eligible green expenditures already reflected in Commonwealth budget allocations.
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