UniSuper invests $100m in green bonds
UniSuper has announced it is the lead investor in the World Bank's first green bond issue into the Australian market.
The fund, which has $40 billion in net funds under management, will invest $100 million into the green bonds to promote the green credentials of its Socially Responsible (SR) Balanced option.
UniSuper members can get exposure to the green bond via the balanced option.
The World Bank will issue an AUD benchmark green bond.
The green bonds are debt securities that support green projects such as those associated with combatting climate change. Green bonds attain private sector financing to fund environmental activities.
"This transaction marks an important step in expanding the Green Bond market — it is the first benchmark-sized green bond denominated in Australian dollars," Doris Herrera-Pol, director and global head of capital markets, World Bank, said.
Talieh Williams, UniSuper's manager, governance and sustainable investment, said the green bonds are in addition to the fund's SR and Global Environmental Opportunities (GEO) options.
"UniSuper is now including green bonds in the SR Balanced option as part of refining its SR approach and to also better satisfy member expectations," Williams said.
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