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Green Bond
Case study

Australia’s first home mortgage backed green bond

Home loans support transition to net zero emissions 

National Australia Bank is the first Australian bank to launch a green bond backed by residential mortgages that meet international low carbon buildings criteria. 

$300m

green tranche

New options

for investors

$25m

CEFC investment

It’s incumbent on us as a bank to play a part in addressing the bigger issues facing society, including Australia’s transition to a low carbon economy. This transaction is another small, but important, step in that journey.
Mike Baird
Chief Customer Officer, NAB

Our investment

The CEFC made a cornerstone investment of $25 million in National Australia Bank’s (NAB) $300 million tranche of Class A1-G Notes that were certified by the Climate Bonds Initiative (CBI). 

our impact 

The CBI Low Carbon Buildings criteria requires residential buildings to meet a net zero carbon emissions trajectory, aligned with the goals of the Paris Agreement to limit global warming to no more than two degrees above pre-industrial levels. 

The CBI has reviewed Australian building codes and energy ratings schemes to determine which are in line with these trajectories. Buildings approved under those codes and energy ratings schemes can automatically be deemed compliant with the CBI Low Carbon Buildings criteria and eligible for CBI certification, providing confidence for investors about the sustainability of the underlying assets. 

NAB’s green notes were part of a larger non-certified $2 billion Residential Mortgage Backed Securitisation. The securitisation extends the NAB’s pioneering approach to the green bond market in developing additional investment options for investors wanting to back sustainability and emissions reduction. 

Last updated 9 February 2018. National, Climate Bonds, Sustainable Cities, Renewable energy, Low emissions, Energy efficiency