Sustainable finance

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We are committed to helping customers move towards more sustainable business models, by funding assets and outcomes to build a better future for all. When funds are allocated to sustainable assets or linked to sustainability outcomes, borrowers and issuers can achieve their sustainability goals and a range of other benefits.

Our team

Our sustainable finance team supports sustainable business opportunities within Westpac Institutional Bank. Our dedicated team can provide you with:

An understanding of the value and importance of sustainable finance to your business
Sustainable finance solutions designed to help grow your business and achieve your sustainability goals
Specialist insights regarding the developing sustainable finance market
Assistance in executing the sustainable finance aspects of your transaction
Product innovation to ensure we proactively address your evolving needs.

As a major financial institution in our region and a founding signatory of the Principles for Responsible Banking, we are committed to setting the agenda for responsible banking and leading meaningful environmental and social progress.

Bonds and green loans

Green bonds, green loans, social bonds & sustainability bonds

Use of proceeds instruments include green loans and bonds, social bonds and sustainability bonds – essentially any debt instrument where proceeds are used to finance or refinance assets or projects that meet certain green or social criteria. There are certain steps that need to be undertaken for an issuer to be able to claim the “green” or “social” label for their bond.

We partner with our institutional customers to lead the transaction through each of these steps, to ensure a successful transaction.

Sustainability linked loans

Sustainability linked loans look at the sustainability performance of the entire company and loan pricing is tied to this performance.

We look not only at a borrower’s financial performance, but also at its sustainability performance. This can be measured using an independent ESG assessment, or through specific performance indicators, with the key consideration being that the chosen performance measurement is material to the borrower’s business, and that targets set are ambitious and meaningful.

We are pleased to work with our customers to determine what your pressing sustainability issues are, what you are targeting to achieve, and how we can help you to get there.

Green tailored deposits

Our Green Tailored Deposit is an innovative approach as it allows our customers to invest funds with us to support the transition to a low carbon economy. We are proud to be the first bank globally to provide such an offering to our customers.

The assets that sit behind our Green Tailored Deposits are reviewed by an external verifier on an annual basis and have been certified by the Climate Bonds Initiative. We publicly report on the underlying assets on an annual basis.

Terms are between 1 and 5 years, with a minimum transaction size of AUD $1million, flexibility in coupon payment frequency and floating or fixed rate return.

Social finance

We are at the forefront of developing the social finance market in Australia.

In 2013, we developed the first bank arranged social benefit bond in Australia. The $10m Benevolent Society Social Benefit Bond draws on our expertise in structured finance. The monies raised are being used to support the establishment and operation of the Resilient Families program that seeks to reduce the incidence of out of home care in New South Wales.

In 2017, we partnered with Social Outcomes to support Churches of Christ in Queensland. The $5m social benefit bond was used to fund the Youth CONNECT program in Queensland to support young people 15 to 25 years old who are exiting or have exited statutory care, and are homeless or are at risk of homelessness.

We are open to assisting interested organisations develop their own program that supports their social and community ambitions.

Who we work with

We provide strategic guidance and tailored banking solutions to Australian, New Zealand and Global customers or potential customers of Westpac Institutional Bank.

Fundamental to our approach is a commitment to sustainability and service, which we leverage to understand the sustainability and banking objectives of each client so we can bring the right solution to the table.

See what we’re doing to drive Westpac’s sustainability strategy forward.

More sustainability insights from Westpac IQ >

Industry contact

Eliza Mathews
Head of Sustainable Finance

Sustainable finance

Our team

Sustainable finance options

Green bonds, green loans, social bonds & sustainability bonds

Who we work with

WESFARMERS' TRAILBLAZING SUSTAINABILITY-LINKED BOND

Sustainability insights from Westpac IQ

Sustainable finance for a world in transition

A clear-cut path for defining sustainable investments

Industry contact