ANZ has introduced a Sustainability-Linked Derivative product in several regions, including Australia, Hong Kong, Japan, and Singapore. This initiative aims to assist customers in reaching their sustainability goals.
Katharine Tapley, ANZ's Head of Sustainable Finance, stated: "ANZ is among very few banks globally to offer Sustainability-Linked Derivatives, which is a natural evolution of the sustainable finance market." She added that this offering expands ANZ's range of products and services to meet the growing demand across various industries and market segments.
The bank plans to extend this product to other major financial markets later in the year. The derivatives include Swaps, Forwards, Cross Currency Swaps, Interest Rate and Foreign Exchange Options. These are executed alongside Sustainability-Linked Bonds or Loans with pricing tied to the sustainability targets of the underlying financial instruments.
ANZ holds a leading position in Sustainable Finance across Australia and New Zealand. It was ranked first according to the 2021 Peter Lee Associates Large Corporate and Institutional Relationship Banking Survey. The bank was also responsible for closing Australia's first Sustainability-Linked Loan in 2018 and issuing the first Sustainability-Linked Bond in the Australian dollar bond market earlier this year.
Furthermore, ANZ has committed AUD50 billion towards funding sustainable solutions by 2025. This commitment includes initiatives aimed at enhancing environmental sustainability, increasing access to affordable housing, and promoting financial wellbeing.