ANNOUNCEMENT 03 Aug 2020

The Australian government-funded Clean Energy Finance Corporation invested AUD 60 million in an equity-linked green bond issued by BNP Paribas.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Clean Energy Finance Corporation. Media. Latest News. "CEFC backs equity-linked green bond to support unique Australian Climate Transition Index" of 3 August 2020. Available at: https://www.cefc.com.au/media/media-release/cefc-backs-equity-linked-green-bond-to-support-unique-australian-climate-transition-index/

Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.aspx

Inception date: 03 Aug 2020 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 3 August 2020, the Clean Energy Finance Corporation of Australia (CEFC) announced the investment of AUD 60 million (over USD 42.8 million at the time of the announcement) in equity-linked green bond issuance from BNP Paribas

The new green bonds are linked to the Australian Climate Transition Index, an equity guide focused on climate transition and decarbonisation. According to the announcement, this list "will seek to identify companies likely to perform well in a world undergoing a 2°C transition[...] [including] 100 Australian companies from within the ASX 300 that will support the transition, adapt and thrive, or be least affected by the expected changes."

In this context, BNP Paribas issued several equity-linked bonds totalling AUD 140 million (circa USD 100 million) with the CEFC as a cornerstone investor.

BNP Paribas is an international financial institution that provides corporations, institutions and private investors with tailored products and service solutions.

 

Clean Energy Finance Corporation
The Clean Energy Finance Corporation is a government-funded financier created to fund clean energies. To achieve these goals, the Australian government has provided credits of AUD 2 billion each year from 1 July 2013.

The statutory text, the Clean Energy Finance Act 2012, states that only solely or mainly Australian-based investments are eligible for these resources.

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