The University of Tasmania has raised $350m in what is the largest green bond deal by an Australian university.
The green bond issue was in the form of a ten year and a 20-year bond with funds raised used to develop the university’s new campus in Hobart. The university agreed to work to reduce the carbon content of the construction by 20 per cent.
The Commonwealth Bank and the National Australia Bank were joint lead managers on the deal, which was is the first green bond issued by an Australian university since 2019.
According to a report by The Australian, University of Tasmania chief operating officer David Clerk, said the strong investor support was “a massive sign of confidence in the university and our sustainability agenda.”
“We had a target of $200m in this first tranche of green bonds, with plans for a second tranche to raise a further $150m,” he said.
“By midafternoon, we had raised the full $350m.
“As a university committed to doing all we can to tackle climate change, it is important we partner with investors who share our sustainability values,” he said.
Charles Davis, the Commonwealth Bank’s managing director of sustainable finance, said said the university’s bond represented another evolution of the green financing market in Australia
“We have not yet seen a green bond in the Australian market with an eligibility criteria focused on embodied carbon rather than operational performance,” he said.
“We are continuing to see more innovation in the broader sustainability and ESG financing market.”
