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Queensland and New South Wales boost green initiatives with major bond issuances

In a significant move towards sustainable financing, the Queensland Treasury Corporation (QTC) has raised a notable portion of its $9.52 billion funding goal for 2023–2024, with the issuance of a bond yielding 4.75%. Rated AA+ by S&P Global and Aa1 by Moody's Investors Service, this bond contributes to QTC's impressive total term debt of $7,28 billion since June 2023.

Queensland and New South Wales boost green initiatives with major bond issuances_Close up on Purling Brook Falls in Gondwana Rainforests_visual 1Close up on Purling Brook Falls in Gondwana Rainforests. AI generated picture.

These funds are earmarked for projects that enhance Queensland’s resilience to environmental challenges and support sustainable economic development. Jose Fajardo, QTC’s head of funding strategy, highlighted the diverse application of these funds, encompassing water infrastructure, renewable energy, and low-carbon transportation initiatives. Central to this initiative is the Southeast Queensland Water Drought Resilient Network, a critical infrastructure project for regional water solutions.

Read more: Preserving paradise: Western Australia's pledge to protect native forests

QTC's current green bond offerings have reached $8.76 billion, spread across six lines, emphasising the organisation's commitment to expanding its portfolio of environmentally friendly projects. Additionally, Fajardo mentioned QTC's focus on evolving investor expectations in the green, social, and sustainable debt sphere, underscoring the importance of the Queensland Sustainability Report in providing transparency on these efforts.

The recent bond issuance has attracted significant interest, with the largest order book in QTC's green bond history exceeding $3.97 billion. Australian investors primarily, with significant participation from Asian, EAMA, and American investors, reflect global confidence in the initiative.

Read more: The rising demand for nature-based credits

In a parallel development, TCorp, New South Wales' financial management partner, has also stepped up its commitment to sustainability with a $1.2 billion bond. This 2035 Sustainability Bond, yielding 4.995%, supports 11 projects with environmental or social benefits, including the Aboriginal Housing Stimulus project. Daniel Chandler, TCorp's head of funding, emphasised the complete utilisation of their current sustainable asset pool, with total ESG projects in NSW now standing at $7.9 billion.

These initiatives by QTC and TCorp are pivotal in Australia’s drive towards environmental sustainability, showcasing innovative financial solutions to support crucial green projects and policy objectives. Environmental advocates emphasise the importance of harmonising development with the conservation of Australia's distinct flora and fauna.

Collaborating with DGB Group opens a pathway to impactful environmental stewardship. This partnership is a step towards achieving net-zero emissions and nurturing a sustainable future, highlighting the significance of nature-centric solutions. These approaches are crucial in safeguarding our natural world, offering strategic plans for forest regeneration and enhancing global ecological wellbeing. Engaging with DGB marks a proactive start towards adopting nature-first practices. We offer a spectrum of green solutions, including green bonds and carbon credits, providing you with access to the expanding market of nature-based opportunities.

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