The Clean Energy Finance Corporation (CEFC) has invested $30 million in retailer Woolworths’ green bond, the first of its kind for an Australian retailer or supermarket globally.
According to CEFC, Woolworth’s $400 million bond will help fund the company’s 2020 sustainability strategy which will see the installation of LED lighting, energy efficient refrigeration, solar panels and other clean energy technologies.
Leader for Debt Markets at CEFC, Richard Lovell said the Woolworths green bond had been instrumental in setting new standards and expectations across the entire retail industry.
“Woolworths’ work on a green bond framework has increased its business-wide focus on sustainability,” Mr Lovell said.
“It sends a strong message to participants of Woolworths’ extensive supply chain,” he said.
“This retail-focused green bond also provides a new asset class for institutional investors seeking opportunities that meet environmental, social and governance requirements.”
He said it created a simple and highly transparent way for the private sector to invest in clean energy technologies.
“The CEFC’s investment in this bond enables us to continue our support for Australia’s emerging green bond market, actively monitor the secondary market for green bonds and gain useful insights into the emissions profile of Australia’s supermarkets,” Mr Lovell said.
Chief Financial Officer for Woolworths, David Marr said the company was pleased with the inaugural green bond transaction.
“The issue of the bonds is a further reflection of our ongoing work to improve our environmental impact and operate a more sustainable business,” Mr Marr said.
