Login
ISCOVER
Non-bank lender Firstmac has issued $1.5 billion in green bonds, with its latest issue including solar-proxy green loans.
Firstmac has issued a prime residential mortgage-backed security (RMBS), its second to include solar bonds as well as regular home loans.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The issue was priced at a margin of just 1.02 per cent over the Bank Bill Swap Rate (BBSW), in line with recent pricing for Firstmac bonds.
Chief financial officer James Austin said the pre-placed private issue, which followed a $1.75 billion issue in October, would be Firstmac’s final issue for the year.
“This has been a successful year for Firstmac, capped off with this issue which included a note backed by solar-proxy green loans,” Austin said.
“The solar bond is an instrument that is close to our heart as we seek to pioneer the Green RMBS Bond market, and it has also proven to be an attractive collateral for environmentally-conscious Japanese investors.”
Firstmac has been at the forefront of the green RMBS bond market, after previously issuing green bonds for energy-efficient homes and pioneering the reporting of greenhouse gas emissions from each vehicle in its auto bond issues.
Its Solar Home Loan helps home owners manage the costs of installing a solar energy system. The home loan offers a 0.6 per cent interest rate discount for five years to borrowers who install a qualifying solar power system.
According to Firstmac, the central aim of its Climate Bonds is to strengthen the Australian response to the threat of climate change by encouraging home buyers to seek more environmentally friendly housing and encouraging existing borrowers to improve the energy efficiency of their existing housing.
[Related: The emergence of green finance]
JOIN THE DISCUSSION