The NSW Government will for the first time issue sustainability bonds, the proceeds of which will fund projects that deliver environmental and social benefits to the residents of NSW.
A sustainability bond is a bond where the proceeds raised are exclusively allocated to projects that are environmentally or socially responsible.
NSW Treasurer Dominic Perrottet said the plan to issue Sustainability Bonds is another step toward investing in our future, allowing the government to mobilise investors who can contribute capital to accomplish these goals.
“Global demand for Sustainability Bonds is increasing as investors are becoming increasingly focused on Environmental, Social and Governance (ESG) themes,” Mr Perrottet said.
“This is a great opportunity for the NSW Government to showcase its ongoing commitment to addressing environmental risks and focusing on ESG concerns”.
“From a state funding perspective, we continue to diversify our investor base which helps us to deliver our programs to the people of NSW.”
The bonds will be issued by NSW Treasury Corporation (TCorp) and will complement the existing general purpose bonds already issued by TCorp.
While it is still relatively small, the issuance of sustainability bonds will continue to gain momentum as governments, corporations, and investors place a greater emphasis on environmental and social outcomes.
TCorp will aim to issue its first Sustainability Bond in the second half of 2018.
A sustainability bond is a bond where the proceeds raised are exclusively allocated to projects that are environmentally or socially responsible.
NSW Treasurer Dominic Perrottet said the plan to issue Sustainability Bonds is another step toward investing in our future, allowing the government to mobilise investors who can contribute capital to accomplish these goals.
“Global demand for Sustainability Bonds is increasing as investors are becoming increasingly focused on Environmental, Social and Governance (ESG) themes,” Mr Perrottet said.
“This is a great opportunity for the NSW Government to showcase its ongoing commitment to addressing environmental risks and focusing on ESG concerns”.
“From a state funding perspective, we continue to diversify our investor base which helps us to deliver our programs to the people of NSW.”
The bonds will be issued by NSW Treasury Corporation (TCorp) and will complement the existing general purpose bonds already issued by TCorp.
While it is still relatively small, the issuance of sustainability bonds will continue to gain momentum as governments, corporations, and investors place a greater emphasis on environmental and social outcomes.
TCorp will aim to issue its first Sustainability Bond in the second half of 2018.