Australia sees $7bn flow to inaugural green bonds

InvestorDaily

The Australian Office of Financial Management (AOFM) has announced the launch of Treasury’s debut green bond, which saw an issue size of $7 billion in face value terms. The oversubscribed debut saw bids total $22.89 billion at the final clearing price from 105 investor institutions across Australia, Asia, Europe and North America. It is expected to settle on Friday, 14 June 2024.

The green bond, maturing in June 2034, will pay a coupon of 4.25 per cent. Initial price guidance for the issue is a spread of -5 to -1 basis points to the implied bid yield for the primary 10-year Treasury Bond futures contract. As previously announced by the AOFM, Commonwealth Bank of Australia, NAB, Deutsche Bank, UBS AG Australia Branch, and Westpac served as joint-lead managers for the issue.

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