Sustainability bond of the year - supranational, sub-sovereign and agency (SSA) - New South Wales Treasury Corporation

Channels: Green Bonds

David DeverallThe New South Wales (NSW) Treasury Corporation (TCorp) issued its inaugural sustainability bond – the first sustainability bond from an Australian semi-government issuer.

The AUD1.8 billion ($1.2 billion) transaction represents the largest AUD-denominated sustainability bond and is the second issuance under TCorp's sustainability bond programme following its inaugural AUD1.8 billion green bond issued in November 2018.

The book was 1.4 times oversubscribed and attracted total bids with a combined value of AUD2.54 billion.

Head of funding and balance Sheet, Fiona Trigona, said: "The Sustainability Bond attracted 56 investors, similar to last year's green bond issue. We also picked up new investors – a good achievement and testament to the fact that investors are genuinely interested in high quality, sustainable investing over the longer term."

Deal Highlights

Issuer: New South Wales Treasury Corporation
Size: AUD1.8 billion ($1.23 billion)
Maturity: March 2025
Coupon: 1.25%
Use of Proceeds: Access to essential services, clean transportation, sustainable water management
External Reviewer: Sustainalytics
Lead Manager: ANZ Bank, Merrill Lynch International, National Australia Bank
Credit Rating: Moody's (Aaa); S&P Global (AAA)
Other highlights/notable features: First AUD sustainability bond issued by a semi-government issuer

She added that "there was substantial interest in our bond during the investor roadshow because our programme supports sustainable NSW government projects. We also reported on sustainability outcomes for the three projects underpinning last year's issuance, and have committed to do the same each year over the life of the programme."

Proceeds from the bond will finance both green and social projects in NSW. The social projects include transport accessibility programmes and education infrastructure including new schools and upgrades to existing schools, while the green projects cover low-carbon transport networks and water infrastructure.

David Deverall, CEO of TCorp, said "We're absolutely delighted by the positive results we've achieved with our inaugural sustainability bond to support the NSW Government's infrastructure plans. Investors have embraced the social assets introduced to complement the green assets in the pool."