Australia Post has successfully priced its first-ever sustainability bond. The six-year A$100 million (US$66.4 million) bond, which focuses on environmental and social projects, was significantly oversubscribed with orders from both Australian and Asian investors.
The bond, supported by National Australia Bank and Westpac as joint lead managers and joint sustainability coordinators, follows the establishment of Australia Post’s sustainable finance framework and is aligned to the International Capital Market Association’s green and social bond principles, and sustainability bond guidelines.
The postal services firm, which issued the bond under an Australian Medium-Term Note (AMTN) programme, says the funds raised will be used to assist the company in delivering on its 2025 sustainability roadmap and community strategy.
The Melbourne-headquartered institution is undertaking a range of sustainable initiatives that include:
- targeting net-zero carbon emissions by 2050
- reducing scope 1, 2 and 3 emissions by 15% by 2025 (FY19 baseline)
- sourcing 100% renewable electricity by 2025
- adopting a 100% fully sustainable packaging range aligned to the 2025 National Packaging Targets by 2025
- decreasing waste to landfill by 20% by 2025 (FY19 baseline)
- spending A$100 million with social enterprise and indigenous suppliers by 2025.
The transaction validates the postal services’ long-term commitment to decarbonization and renewable energy, says Rodney Boys, the company’s group chief financial officer, and highlights its commitment to community service and social purpose.
The company is the country’s first government business enterprise to target net-zero emissions by 2050, with further commitments laid out in its 2025 sustainability roadmap, including working to meet the United Nations Sustainability Development Goals.