CBA and Northern Trust trade Australia鈥檚 first green repo
14 December 2021 Australia
Image: AdobeStock/MrForever
The Commonwealth Bank of Australia has completed its first green repo transaction, a A$50 million (US$36 million) trade conducted with Northern Trust.
This green repo trade represents an agreement to exchange general collateral for cash, with the cash raised in the transaction being allocated towards CBA鈥檚 portfolio of green loans. This green repo trade has a tenure of 1 to 12 months.
Andrew Hincliffe, CBA鈥檚 group executive for institutional banking and markets, says: 鈥淏uilding efficient, smart, green infrastructure is critical to creating the economy of tomorrow and advancing Australia鈥檚 transition journey. Innovative financial products have a key role to play in this journey, allowing more capital to be directed to the assets that will drive the transition.鈥�
Leon Stavrou, Northern Trust country chief executive in Australia and New Zealand, says: 鈥淎s the first of its kind in Australia, participation in the Green Repo product launch reinforces Northern Trust鈥檚 commitment to sustainable investing and innovation.鈥�
Sean Kidney, CEO of the Climate Bond Initiative, says: 鈥淭his latest transaction is embedding international best practice on standards in a new green product, a combination increasingly sought after by institutional investors.
鈥淚t opens another positive pathway for increasing capital flows into low carbon activities and transition solutions in the real economy.鈥�
This green repo trade represents an agreement to exchange general collateral for cash, with the cash raised in the transaction being allocated towards CBA鈥檚 portfolio of green loans. This green repo trade has a tenure of 1 to 12 months.
Andrew Hincliffe, CBA鈥檚 group executive for institutional banking and markets, says: 鈥淏uilding efficient, smart, green infrastructure is critical to creating the economy of tomorrow and advancing Australia鈥檚 transition journey. Innovative financial products have a key role to play in this journey, allowing more capital to be directed to the assets that will drive the transition.鈥�
Leon Stavrou, Northern Trust country chief executive in Australia and New Zealand, says: 鈥淎s the first of its kind in Australia, participation in the Green Repo product launch reinforces Northern Trust鈥檚 commitment to sustainable investing and innovation.鈥�
Sean Kidney, CEO of the Climate Bond Initiative, says: 鈥淭his latest transaction is embedding international best practice on standards in a new green product, a combination increasingly sought after by institutional investors.
鈥淚t opens another positive pathway for increasing capital flows into low carbon activities and transition solutions in the real economy.鈥�
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