Green bonds are nominal fixed income bonds which provide finance for specific Government projects with environmental outcomes. We expect they will be available from late 2022.
Sovereign Green Bonds will help ensure high quality Government projects with robust environmental outcomes are financed, delivered, monitored and reported on. New Zealand Debt Management (NZDM) will also be focused on ensuring issuance is consistent with its core objective of minimising costs over the long-term while accounting for risk and that liquidity in all its products is supported. In addition, the issuance of sovereign Green Bonds is expected to provide further diversification of its investor base and support development in the broader New Zealand sustainable finance market.
Design of the Green Bond programme will be informed by international best practice and will also consider how to incorporate New Zealand specific elements. NZDM will engage with market participants to seek their insight on details of the programme.
Alongside Nominal Bonds and Inflation-Indexed Bonds, Green Bonds are expected to be an important and enduring part of the New Zealand Government Bond portfolio.
How to Invest in New Zealand Sovereign Green Bonds
Subject to market conditions, New Zealand Sovereign Green Bonds are expected to be available from late 2022. Contact [email protected] for more information or subscribe to our investor update (below).