Australia Commands Rare Premium in First Green Bond Issuance
- Green bond is three times oversubscribed, yield of 4.295%
- Investors willing to pay premium to hold Australian green debt
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Australia commanded a premium for its first sovereign green bond, as investors were drawn by the nation’s credible framework and plan to issue more debt.
The nation attracted more than three times the A$7 billion ($4.7 billion) worth of debt maturing in June 2034 at the final clearing price, the Australian Office of Financial Management said Tuesday. The average yield is 4.295%, about 1.5 basis points below the nation’s benchmark May 2034 bond, according to Bloomberg calculations, indicating investors were willing to pay a premium to hold green debt.