CBA recently played a leading role in supporting Lendlease’s second green bond issue in five months, as investors continue to increase their exposure to sustainability-linked projects.

The 10-year $300 million green bond issued late last month builds on Lendlease’s $500 million debut green bond issued in October last year. Both issuances were oversubscribed, demonstrating the strong appetite among investors for products that deliver positive environmental and social outcomes.

The funds raised will help Lendlease deliver green building projects that will lower carbon emissions, reduce the environmental impact of materials, and deliver health and well-being benefits. CBA acted as joint lead manager as well as green bond advisor on both transactions. 

The successful issuance comes as investors continue to increase their holdings of financial instruments linked to environmental, social and governance (ESG) factors. Sustainable investment assets now account for $US17.1 trillion - or 1 in 3 dollars - of the total US assets under management[1]. Looking ahead, the Business & Sustainable Development Commission forecasts that sustainability can unlock at least $12 trillion in new market value globally by 2030[2].

Andrew Hinchliff, Group Executive Institutional Banking and Markets said  both clients and investors have sharpened their focus on ESG over the past 18 months. Australian corporations recognise the opportunities to incorporate ESG factors in their business models as they transition to net zero, but they are also cognisant of the risks of staying on the sidelines.

“In the context of future challenges and opportunities, sustainability stands out as the most important, that’s what our clients are telling us,” he said.

“The opportunity can’t be overstated – transitioning to net zero presents huge investment and growth opportunities for business. Capital is already starting to differentiate between those who are moving and those who are lagging. Those who leave it too late risk being left behind, and could become stranded assets.”

CBA is playing a key role in arranging financing for clients that also helps them reach their ESG and climate goals and helped raise over AUD $1 billion in domestic sustainability linked loans and green loans to date.


Notes for editors:

  • [1] Report on US Sustainable and Impact Investing Trends 2020, US SIF Foundation
  • [2] Better Business Better World, Business & Sustainable Development Commission