Standard

The Climate Bonds Standard and Certification Scheme is a FairTrade-like labelling scheme for bonds. Rigorous scientific criteria ensure that it is consistent with the 2 degrees Celsius warming limit in the Paris Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.

 

 

National Australia Bank (NAB)


The National Australia Bank (NAB)
is one of largest banks in Australia. 

Their climate bond in 2014 was Australia’s first Certified Climate Bond. The bond closed on the 8th December 2014 after doubling in size due to strong investors demand. Proceeds of the $300 million bond will fund a portfolio of 17 wind and solar energy farms. 14 of these are operational and three are under construction. The assets will total an aggregate installed capacity of 1.5 gigawatts of electricity across Victoria, South Australia, Tasmania, Western Australia, NSW and the ACT.

 

They issued again, in 2017, with an offshore bond through their UK operations, with an even larger issuance.

 

In February 2018, they set up a Residential Mortgage Backed Securities Trust in order to issue a green bond to finance their residential mortgages which are linked to low carbon homes which meet the Climate Bonds Standard Criteria.

In June 2018, they updated their Green Bond Framework to explain how their low carbon financing will help with the SDGs (Sustainable Development Goals). This will involve a whole suite of financing for renewable energy developments, low carbon buildings and low carbon transport.

In June 2018, they issued a "Low Carbon Portfolio Notes" bond that refinances a pool of loans they have made to renewable energy developers. This bond allows other types of investors to link into the renewable energy developers in Australia.

 

NAB has released many regular reports and updates regarding their bonds, after issuance.

 

DATE OF ISSUE NAME OF BOND (if any) TYPE OF INSTRUMENT SIZE in Issuance Currency (in USD) TENOR COUNTRY OF ISSUE CLIMATE BONDS SECTOR CRITERIA

VERIFIER'S REPORT

ANNUAL REPORT FURTHER INFORMATION
December
2014
  Use of proceeds bond AUD 300m (USD 246m) 7 years Australia Wind
Solar
DNV GL pre issue report

NAB AUD Climate Bond Verification Update – February 2018

NAB Annual Green Bond Report for FY17

NAB Green Bond EY Assurance Statement for FY17

2018 Report

2017 Report

2015 Report 

NAB Green Bonds website
March

2017
NAB UK GMTN Use of proceeds bond EUR 500m (USD 533m) 5 years United Kingdom Wind, Solar, Low Carbon Transport 

DNV GL pre issue report

DNV GL post issuance report

NAB EUR Climate Bond Verification Update – February 2018

NAB Annual Green Bond Report for FY17

NAB Green Bond EY Assurance Statement for FY17

Annual report Feb 2018

NAB Press Release

NAB Green Bonds website

February 2018 National RMBS Trust 2018-1 Securitized Bond AUD 300m (USD 234m) 31 years Australia Low Carbon Buildings (Residential) DNV GL pre issue report  

Press Release

NAB Green Bonds website

This instrument was issued through a separate vehicle - National RMBS Trust 2018-1

June 2018 SDG Bond Use of proceeds bond USD 750m 5 years Australia Wind, Solar, Marine Renewable Energy, Low Carbon Transport, Low Carbon Buildings (Commercial) DNV GL pre issue report  

SDG Green Bond Framework

NAB Green Bonds Website

June 2018 Low Carbon Portfolio Notes Securitized Bond AUD 200m 10 years Australia Wind, Solar pre issuance report is same as SDG bond, because programmatic Certification   NAB Infographic

 

 

Read the announcement of the bond in 2014 and watch the interview with Steve Lambert, NAB Executive GM.