The Government has issued $7 billion of its inaugural green bond, in a major milestone for Australia's sustainable finance market.
The global energy transformation represents a golden opportunity for Australia and this bond is pulling more global and domestic green capital into financing that opportunity.
Money raised from the bond will back projects that will help make Australia an indispensable part of the global economy and bring new jobs to communities all around the country.
The Australian Office of Financial Management's (AOFM) bond issue was over‑subscribed with more than $22 billion in bids from 105 investor institutions across Australia, Asia, Europe and North America.
Demand for the bond confirms Australia is a go‑to destination for international green capital. This is why encouraging and facilitating more private sector investment into the move to net zero is such a key part of the Albanese Labor Government's Future Made in Australia plan and last month's Budget.
The green bond gives investors from around the world the opportunity to back government supported projects in Australia which are crucial to climate change mitigation, climate change adaptation and improved environmental outcomes.
Money raised from the green bond will go towards projects like green hydrogen hubs, community batteries and clean transport, as well as programs to conserve biodiversity, among others.
The projects supported by the bond will deliver significant environmental benefits, including lowering greenhouse gas emissions, increasing Australia's renewable energy production and bolstering our biodiversity conservation, restoration and adaptation.
This nature positive approach ensures that as our environment thrives so too does the economy and the community.
The bond demonstrates the Government's commitment to achieve net zero emissions by 2050 and the objectives of the United Nations Sustainable Development Goals.
