Westpac has announced its partnership with the World Bank and BNP Paribas to launch the first Sustainable Growth Bonds.
The offer provides Westpac Group customers the chance to support the United Nations’ Sustainable Development Goals (SDGs) through investing in bonds that raise funding to finance supporting projects. Investors will benefit from the performance of companies included in the equity index.
The 17 SDGs of the UN include eliminating poverty and hunger; promoting good health, wellbeing and education; striving for gender equality; providing clean water and sanitation; offering affordable and clean energy; supplying quality jobs that inspire economic growth; investing in sustainable infrastructure; actively reducing inequalities; promoting sustainable cities and responsible production and consumption; implementing climate action; caring for oceans and forests; preventing deforestation and loss of biodiversity; and fighting for peace and justice.
The bonds' returns are dependent on an index that monitors the stock performance of companies advancing these goals.
The Solactive Sustainable Development Goals World MV Index includes 30 companies that each allocate at least one-fifth of their activities to sustainable products or, alternatively, are recognised as leaders in their industries for social or environmental sustainability.
Interested investors must input a minimum investment of $100,000, with BNP Paribas organising the bonds as part of the World Bank’s ‘SDGs Everyone’ initiative.
The World Bank will issue the bonds in Australian dollars, adding to the over US$1.5 billion in bonds issued to institutional and retail investors under the initiative.
The bonds will be offered exclusively to Westpac Private Bank, St George Private and Bank of Melbourne Private customers.