The first even green exchange traded bond has been released on the ASX today (Tuesday), as part of two new tranches of 10 XTBs as demand for the innovative new product continues to drive expansion.
A media statement from Australian Corporate Bond Company said:
The first green XTBs are over fixed rate green bonds from ANZ and NAB (YTMANZ & YTMNA1). Green bonds are comparable to other senior bonds in their structure. Their ‘green’ label comes from the bond issuer committing to using the funds for purposes that meet the requirements of the Climate Bonds International Standards and Certification Scheme. This makes them of interest to environmentally focused, ethical investors.
Today’s release includes five floating-rate XTBs and a further five fixed rate XTBs. It significantly expands the range of XTBs available over bank bonds including bonds from issuers such as ANZ, Macquarie Bank and Westpac for the first time.
The indicative yields of the fixed rate XTBs ranged from 2.26% to 2.54% and indicative trading margins of the floating rate XTBs from 0.67% to 0.92% over BBSW on 21 October.
Australian Corporate Bond Company (ACBC) co-founder and CEO Richard Murphy said the expanded XTB range reinforced the firm’s commitment to innovation and improving investor access to corporate bonds on ASX.
“The two green XTBs have been launched in response to growing interest among investor groups and professional managers looking for ways to make a positive contribution to the environment.”
XTBs are an ASX-traded product giving investors exposure to the returns from corporate bonds. XTBs are available over a wide variety of ASX100 companies such as BHP, NAB and Telstra. Each XTB has a face value of $100.
“XTBs provide a regular, reliable income stream and are defensive assets for today’s volatile and uncertain markets,” Mr Murphy said.