BNP Paribas’s debut as a Kangaroo green-bond issuer also introduced a globally innovative structure to the local environmental, social and governance (ESG) market. The transaction, which priced on 3 August, is a standard use-of-proceeds green bond that also rewards investors for the outperformance of a new forward-looking climate-transition equity index.
In May, Commonwealth Bank of Australia (CommBank) and KangaNews undertook a ground-breaking research project to learn more about Australian fixed-income investors’ green, social and sustainability (GSS) strategies. The results of the Fixed-Income Investor GSS Survey shine the spotlight on a market that has evolved significantly but remains a work in progress.
Immediately after completing their Fixed-Income Investor GSS Survey, Commonwealth Bank of Australia (CommBank) and KangaNews convened a panel of leading Australian fixed-income investors to discuss and add colour to the survey findings. Investors explain why they think as they do on green, social and sustainability (GSS) issues and share views on how the space may evolve in future.
COVID-19 has spurred record volume of social-bond issuance and some sustainable-finance experts believe the crisis will be the catalyst for much more widespread adoption of the instrument. Despite the best efforts of advocates, however, the hurdles to habitual use of social bonds, especially in the private sector, remain high.