Award winning Australian first
Innovative NAB approach gives investors access to renewables
The award-winning NAB Low Carbon Shared Portfolio was the first of its kind in Australia, giving Australian organisations the ability to directly invest in large-scale renewable energy projects.
CEFC cornerstone investment
annual tCO2-e abatement
The Low Carbon Shared Portfolio creates a new investment model in the Australian market, and is one we expect will become more common as demand for socially responsible investment opportunities increases. We are pleased to be involved at this foundation level to support the development of this new market.Richard LovellDebt Markets Lead, CEFC
The $200 million NAB Low Carbon Shared Portfolio, backed by existing renewable energy projects, created new opportunities for institutional investors.
The portfolio was backed by eight NAB loans across seven existing wind and large-scale solar projects in Australia.
The electricity generated by these seven projects avoids more than 2,500,000 tCO2-e every year, which is equal to the emissions created by over 350,000 Australian households.
The portfolio’s secured, floating rate, amortising notes were the first Australian Climate Bond certified project bonds. Investors in the notes received principal and income from the NAB loans on an amortising, pass-through basis.
The CEFC made a $90 million cornerstone commitment to the NAB Low Carbon Shared Portfolio in June 2018. The CEFC investment was fully discharged in January 2022.
Australia's growing superannuation sector can help underpin future clean energy investment, as well as capture the value of Australia’s growing renewable energy infrastructure to benefit their members.
The innovative NAB portfolio created an opportunity for institutional investors such as superannuation funds to participate in the renewable energy sector even though they may not have been able to enter into individual project financing transactions.
In March 2019, the Climate Bonds Initiative recognised the NAB Low Carbon Shared Portfolio with a Green Bond Pioneer Award for Product Innovation at the 4th Annual Green Bond Pioneer Awards.
The awards are the premier annual recognition of achievement by organisations, financial institutions, governments and individuals who have demonstrated leadership through pioneering initiatives and green issuance, providing best practice examples of climate resilient and low carbon investments in a diverse range of nations and markets.