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Investors Worldwide Pour Nearly $400 Million Into Bond Promoting Gender Equality

The five-year bond was purchased by superannuation funds and groups based in Australia, the UK, Hong Kong, Singapore, Switzerland, Korea and Taiwan that focus on socially responsible assets.
Foreign and Australian investors have poured A$500 million
($385.3 million) into the first ever social bond promoting
workplace gender equality, priced by National
Australia Bank.
The proceeds from the bond will go to Australian businesses
funded by NAB that support women in leadership roles. To qualify,
organisations must also be cited by the Workplace Gender Equality
Agency (WGEA) as an Employer of Choice for Gender Equality.
“There are proven links between diversity and better business
profits that can’t be ignored,” said Cathryn Carver, acting chief
customer officer, corporate and institutional banking.
According to a report from McKinsey & Company, companies in the
top quartile for gender or racial and ethnic diversity are more
likely to have financial returns above their national industry
medians. Carver said gender equality is one of the many big
issues that banks and investors can help address.
“This bond creates a new pathway for big investors to back the
workplaces that are taking a leadership role to support women and
equality,” Carver added.
The five-year bond was purchased by superannuation funds and
groups based in Australia, the UK, Hong Kong, Singapore,
Switzerland, Korea and Taiwan that focus on socially responsible
assets.
“Successfully launching this bond is a critical step forward in
building a market for socially responsible investments, and in
elevating gender equality as a business imperative,” said Eva
Zileli, head of group funding. “Investors increasingly want
choices and options to act on social issues and we are finding
ways to make that happen.”
The organisations included in the initial bond portfolio are Lend
Lease, Mirvac, Stockland, Monash University, Australian Catholic
University, PwC, KPMG Australia, King & Wood Mallesons
(Australia), Clayton Utz, Gilbert + Tobin, Minter Ellison, Corrs
Chambers Westgarth, Ashurst Australia and Henry Davis York.
The five-year, fixed rate bond is priced at semi quarterly asset
swap plus 95 basis points, yielding 3.445 per cent. It is rated
Aa2 (Neg) / AA- (Neg), (Moody’s/S&P) and has the same credit
quality and profile as any other senior unsecured bond issued by
NAB.