Connect with us

Hi, what are you looking for?

The Smart Citizen Report

BREAKING NEWS

BNP Paribas issues Australia’s first climate-linked bond

imageStock Markets6 hours ago (Aug 02, 2020 06:25PM ET)

(C) Reuters. The logo of BNP Paribas is pictured during the Viva Tech start-up and technology summit in Paris, France

By Paulina Duran

SYDNEY (Reuters) – BNP Paribas (OTC:BNPQY) issued Australia’s first green bond linked to the performance of an index tracking companies tipped to benefit from the country’s transition into a low-carbon economy, aiming to bridge a gap in sustainable investment products.

On Friday, BNP sold A$140 million ($101.12 million) of 8-year bonds that pay a fixed coupon plus a potential return tied to the performance of a “forward-looking” climate transition index, the first of its kind, investors said.

As large asset managers reshape their investment strategies away from dirty investments, the ‘A+’-rated bond adds to the $350 billion in green bonds expected to be issued globally this year.

Developed by the French bank in collaboration with Monash University, ClimateWorks Australia and the ESG arm of corporate governance consultant Institutional Shareholder Services, the index uses scenario weighting and company data to chose those likely to do well from the transition to a decarbonised world.

Australia’s First State Super, a A$125 billion pension fund, QBE Insurance, and the government-funded Clean Energy Finance Corporation (CEFC) invested in the bond, which builds on a similar European equity-linked green bond issued by BNP in 2014 that was not forward looking.

Investors will receive an undisclosed fixed coupon linked to BNP Paribas’ green bond program, plus a potential “green premium” stemming from the performance of the new Australian index. BNP will use the proceeds to invest in certified green projects and hedge the exposure to the index.

While there are plenty of climate-related investment indices that rely on emissions and financial data that is backward looking, the new Australian Climate Transition Index focuses on future climate transition risks and opportunities for Australian companies.

“With the companies on the ASX 300 responsible for an estimated 40% of national emissions, there is clear potential for them to make a substantial contribution to improving Australia’s emissions profile,” CEFC CEO Ian Learmonth said.

BNP Paribas issues Australia’s first climate-linked bond

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Join Our Time-Limited Free Subscription! Get Latest Trading Ideas, Business Info and Market Stocks.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

You May Also Like

Editor's Pick

 Going Full Liberal In response to the arrest of a man who walked into a cafe holding a baseball bat and screaming through a megaphone, a...

Editor's Pick

Going Full Liberal The liberal plan?  Get the body count as high as possible to hurt Trump.  These people are disgusting. Last week, the...

Editor's Pick

Going Full Liberal More trouble for creepy Joe. An extensive new survey by Morning Consult of nearly 28,000 registered voters presents some troubling numbers for the...

Editor's Pick

Going Full Liberal Liberal brilliance on full display. New York City appears to have experienced a surge in shootings this week after the New...

Editor's Pick

Going Full Liberal In the past few weeks, demonstrators — mobs, really — have destroyed or defaced the following statues across the United States....

Editor's Pick

Going Full Liberal The Justice Department released Peter Strzok notes from 1/4/2017 regarding the Flynn-Kislyak calls. Last month it was revealed 2020 Democrat presidential...

Editor's Pick

Going Full Liberal National Public Radio (NPR) posted a tweet Saturday urging every reader to begin “decolonizing your bookshelf.” According to NPR, “white voices...

BREAKING NEWS

Crude oil prices plunged sharply on Thursday, extending losses to a fifth session, amid concerns about the outlook for energy demand. The coronavirus has...

Disclaimer: TheSmartCitizenReport.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.

The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

© Copyright 2021,TheSmartCitizenReport.com All Rights Reserved