BNP Paribas has issued a series of equity-linked green bonds totaling A$140 million (US$99.87 million), with the proceeds to be invested in a portfolio of green projects, the French global banking group says in a statement.
The bonds, linked to the Australian Climate Transition Index (ACT Index), were subscribed to by Clean Energy Finance Corporation, First State Super (soon to be renamed Aware Super), and QBE Insurance.
The ACT Index uses five “dynamic” climate scenarios, which will continue to be adjusted to reflect future regulatory, technology and social environmental changes. It was jointly developed by BNP Paribas with ClimateWorks Australia, ISS ESG and The Centre for Quantitative Finance and Investment Strategies at Monash University.
The index seeks to identify companies likely to perform well in a world undergoing a 2°C transition and to continue to play a part of the Australian economy in a 2°C future. This includes 100 Australian companies that will support the transition, adapt and thrive, or be least affected by the expected changes, according to the statement.
Says Pascal Fischer, head of global markets for Asia Pacific at BNP Paribas: “Having the long-term support of these three major Australian investors indicates a clear willingness and readiness for action among critical sectors in Australia. We are pleased to support climate transition efforts in Australia and bring our European expertise to the development of this innovative climate index.”