World’s first green climate bond from a Uni
Monash University has issued what they are claiming is the world's first climate green bond from a university, which will contribute to the tertiary institution's net zero emissions target.
The institution raised $218 million to fund low carbon developments.
It was structured to provide investment options in both US and Australian dollars over 15, 17.5 and 20 years, while the bond was also certified by the Climate Bonds Standards Board.
Climate Bonds Initiative's chief executive, Sean Kidney, said the university's climate bond represented best international practice in matching climate and sustainability objectives, with capital raising.
"Monash University has joined the international pacesetters in green finance with this certified climate bond. They are providing leadership by example for both domestic and international tertiary institutions and wider investment sectors," Kidney said.
Monash University's president and vice chancellor, Professor Margaret Gardner, said: "Monash has a responsibility to provide strong and visionary leadership on sustainable development".
"We want our campus network to be exemplars of environmental, social and economic best practice".
Over the next two years Monash University would allocate funds to a portfolio of projects, which met both low carbon building and solar criteria, set by the climate bonds standards.
Second opinions would also be sought by Moody's Investors Services, while Ernst and Young would verify if funds aligned with the climate bonds' standards.
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
