ANZ goes green on guarantees

ANZ has again highlighted its market-leading innovation in the sustainable finance space, investing in green guarantee products in a move ANZ Managing Director Transaction Banking Lisa Vasic calls a “natural evolution” of its existing sustainability work.

The bank has expanded its sustainable finance offering into green guarantee facilities, with the capability set to be offered to customers in Hong Kong, Singapore, Australia, New Zealand and Europe.

Speaking after the announcement of bank’s first such guarantee facility with Vibro, a subsidiary of NWS Holdings Limited, Vasic said the solutions would help support ANZ customers in their transition to net-zero emissions.

“We’re proud to be one of the first banks globally to offer green guarantee facilities as we look for innovative ways to support our institutional customers and their sustainability objectives,” she said. “The establishment of this new product follows the natural evolution of the sustainable finance market while also meeting the changing needs of our customers.”

Bank guarantees are unconditional undertakings from financial services groups to pay one party in the event of another’s default. Green guarantees secure the contractual obligations of businesses and link them to the use of proceeds from sustainable assets and environmentally sustainable projects.

ANZ has implemented a $HK117.8 million green guarantee facility centred on a Vibro-led foundation project in the West Kowloon Cultural District in Hong Kong.

The facility is linked to the sustainable nature of the underlying assets financed through the agreement and requires certain ESG criteria to be met, includes attainment of BEAM Plus New Building (Version 2.0) certification, a comprehensive standard for green properties in Hong Kong.

In addition to delivering a green building project, the guarantee requires a number of environmental initiatives to be implemented during construction, including strict environmental, energy and safety management practices, as well as the adoption of electrification measures and use of biodiesel where practicable.

ANZ Hong Kong Chief Executive Officer Peter Chan said ANZ was delighted with the milestone transaction which further reinforces ANZ’s commitment to environmental sustainability.

“This is our first green guarantee for low-carbon buildings,” he said. “Our objective was to structure a solution which supported Vibro’s sustainability agenda and Hong Kong’s strong sustainability credentials.”