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World Bank has issued its first Kangaroo Green Bond for $300m, placed with 15 accounts including major Australian institutional investors. UniSuper was the cornerstone investor with $100m. Other Australian investors include Aberdeen Asset Management, AMP Capital, Australian Ethical Investment Ltd, Colonial First State Global Asset Management, Local Government Super and QBE Insurance Group Ltd. Green Bonds are designed to fund projects targeted at climate change issues which directly affect developing countries. These projects include eco farming in China, waste management projects in Colombia and urban transport in India. One observer said “The new IBRD green bond looks expensive relative to outstanding deals but it will be appealing to a slightly different investor base.” The 5yr Kangaroo Green Bond was issued at a spread of 40.25bps over ACGB. Worldwide, the Green Bond programme has so far raised more than US$4bn.
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