- Western Australian Treasury Corporation (WATC) has issued its first green bond
- $1.9 billion in funding raised by the bond will support eligible government projects that deliver environmental outcomes
- Bond issue was heavily oversubscribed with over $6 billion in bids from more than 60 investors
- Culmination of two years of work by WATC building the State’s Environmental, Social and Governance (ESG) credentials to domestic and international investors
Treasurer Rita Saffioti has announced the successful launch of the State’s inaugural green bond – raising $1.9 billion for eligible government projects that deliver environmental outcomes.
The bond, which matures in July 2033, was heavily oversubscribed with over $6 billion in bids from more than 60 investors.
The green bond is a “use of proceeds bond.” It supports eligible projects delivering positive environmental outcomes, such as the State’s significant investment to decarbonise the main electricity grid. This includes batteries and wind farms, electric vehicle charging infrastructure and rebates and standalone power systems.
The issue of the bond follows more than two years of work done by the Western Australian Treasury Corporation as they coordinated across government agencies to outline the State’s Environmental, Social and Governance (ESG) credentials to domestic and international investors. Global investors are increasingly aware and interested in ESG performance and this work will assist in keeping the State’s cost of borrowing lower by expanding the pool of potential investors.
The credentials of the green bond were supported by an independent second party opinion from global ESG research firm Sustainalytics who verified the breadth of State Government initiatives that met the international requirements for funding through green or social bonds.
The bond demonstrates the State Government’s strong progress in initiatives that deliver ESG outcomes that contribute to the commitment to achieve net zero emissions by 2050 and the objectives of the United Nations Sustainability Development Goals.
As stated by Treasurer Rita Saffioti:
“The successful issue of the State’s inaugural green bond is a key milestone in the evolution of our borrowing program. 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.
“Investors are increasingly interested in ESG performance, and I commend the Western Australian Treasury Corporation for the extensive work to issue the green bond and build the State’s ESG credentials with investors over the past two years.”
