Western Australia raises USD 1.3bn in debut green bond issue

The Western Australian Treasury Corporation (WATC) announced it has raised AUD 1.9 billion (USD 1.29bn/EUR 1.19bn) in its first-ever green bond issue, saying the proceeds will go for projects that deliver positive environment, social and governance (ESG) outcomes.

The transaction, which is the result of two years of work, was more than three times oversubscribed, attracting bids for over AUD 6 billion from more than 60 investors, a press release said on Wednesday.

The funds raised will support the State's push to decarbonise the main electricity grid and will go for investments in batteries and wind farms, electric vehicle charging infrastructure and rebates and standalone power systems, among others.

“Global investors are increasingly aware and interested in ESG performance and this work will assist in keeping the State's cost of borrowing lower by expanding the pool of potential investors,” the Western Australian government’s statement said.

The bond matures in July 2033. Its credentials were supported by an independent second-party opinion from ESG research firm Sustainalytics.

(AUD 1 = USD 0.679/EUR 0.628)

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