Westpac teams up with World Bank to launch sustainable bonds
The World Bank (international Bank for Reconstruction and Development, IBRD) has partnered with two banks, Westpac and BNP Paribas, to launch the first Sustainable Growth Bonds for Australian investors.
The bonds would be offered to clients of the Westpac Group through Westpac Private Bank, St George Private and Bank of Melbourne Private.
The bonds’ returns would be linked to an index that tracked the stock performance of companies advancing global development priorities set out in the Sustainable Development Goals (SDGs) including, climate, gender equality, health, education and sustainable infrastructure.
This index included 30 companies of which each would need to dedicate at least one fifth of its activities to sustainable products and would need to be recognised leaders in their respective industries on socially and environmentally sustainable issues.
The bank said that initially the bonds would be issued in Australian dollars with a minimum investment amount of AUD 100,000 and arranged by BNP Paribas as part of the “SDGs Everyone” initiative.
The World Bank, which has high issuer credit ratings and will provide capital protection at bond maturity, issued in excess of US$1.5 billion in bonds under the initiative for institutional and retail investors.
AUTHOR
Oksana Patron
Recommended for you
Six months after scrapping its planned deal with KKR, Perpetual is yet to make significant headway on the sale of its wealth management division but is focusing on alternatives for product development.
Platinum Asset Management’s NPAT has fallen by 89 per cent in FY25, with the firm confirming that it will be renamed as L1 Group following the expected completion of its merger with L1 Capital.
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
