MNI BRIEF: NZ Govt To Issue Green Bonds In Late 2022

The New Zealand Government announced plans on Friday to issue sovereign green bonds next year, with the funds used to support progress towards the country's net zero carbon target.

Finance Minister Grant Robertson said there was a "substantial and growing investor demand for sovereign green bonds."

The issue will be managed through NZ Debt Management at the Treasury, with the inaugural issuance planned for late 2022.

In September, Reserve Bank of NZ assistant governor Simone Robbers told MNI that the central bank had been in conversations with the government and Treasury on green bond issuance, which could be added to the bank's holdings as part of its climate change response, see: MNI INTERVIEW: RBNZ Talks To Government About Green Bonds.

The RBNZ's 2021 Climate Change Report revealed that the carbon intensity of bank's sovereign bond holdings is just over 15% higher than the S&P G7 Sovereign bond index, and is skewed by holdings of bonds from higher-emitting countries such as Australia and Canada. The RBNZ holds US$100 million in bonds through the Bank of International Settlements' Green Bond Investment Pool.