WA issues inaugural $1.9b green bond

The Western Australian Treasury Corporation (WATC) has successfully launched the State’s first green bond – raising $1.9b for eligible government projects that deliver environmental outcomes.

The bond was heavily oversubscribed with more than $6b in bids received from over 60 investors.

WA’s ‘use of proceeds bond’ supports eligible projects delivering positive environment outcomes such as the state’s investment to decarbonise the electricity grid.

This includes batteries, wind farms, rebates, standalone power systems and electric vehicle charging infrastructure.

WA Treasurer Rita Saffioti said the issue of the green bond is a key milestone for the state.

“The successful issue of the state’s inaugural green bond is a key milestone in the evolution of our borrowing program,” she said.

‘’It reflects the state government’s significant investments in initiatives that deliver positive environment, social and governance outcomes.

“The green bond issue was heavily oversubscribed, highlighting the confidence investors have in our commitment to deliver projects with positive environmental outcomes and our strong financial performance.”

What is a green bond?

Green bonds are used to finance new and existing projects that offer climate change and environmental benefits.

Worldwide, the majority of green bonds have been used to fund rail transportation projects and renewable energy.

A project is determined to be ‘green’ or not from London-based not-for-profit the Climate Bonds Initiative (CBI).

In 2016, Victoria became the first Government in Australia to issue green bonds and the world’s first state or federal government to issue bonds with the International Climate Bond Certification.