Australia Commands Rare Premium in First Green Bond Issuance.

Australia has issued its first sovereign green bond, attracting significant investor interest due to the nation's credible framework and plans for future debt issuance. The bond received over three times the amount of demand compared to its maturing debt, indicating investors were willing to pay a premium for green debt. This comes as governments and corporations increasingly turn to sustainable finance markets for cheaper funding costs. Australia's green bond proceeds will be used for its energy transition, excluding nuclear power, and the government's green bond framework aligns with international norms. However, Australia's carbon emissions and emission reduction policies have been criticized for being insufficient in meeting its Paris Agreement obligations. Despite this, the issuance is seen as a positive step towards a successful transition. [Extracted from the article]