Canberra: Commonwealth Bank of Australia (CBA), in collaboration with Northern Trust, said on Monday that it would be giving new "green loans" worth AUSD50 million (USD35.88 million).
According to reports, the Green Repurchase Agreement, or Green Repo, is the first stage in CBA's march toward a wider portfolio of green investments. This product, and others like it, will be critical in "enabling more capital to be directed to the assets that will drive the move to net-zero," according to Andrew Hinchliff, Group Executive of Institutional Banking and Markets at CBA. "Building efficient, smart, green infrastructure is crucial to progressing Australia's transition journey and establishing the economy of future," he added.
The agreement would provide an alternative, exclusive channel for green projects to apply for funding with more flexible payback terms. It is Australia's first participation in the international non-profit Climate Bonds Initiative (CBI), which has enlisted the help of banks all around the world to fund green initiatives.
As part of its green initiative, the bank has increased its individual commitment, providing low-interest loans to farms that are making modifications to minimise greenhouse gas emissions, as well as to homeowners who are installing solar panels on their homes.
Afghanistan receives 3rd batch of World Bank's cash assistance
Iran says US to lift sanctions in exchange for return to nuke deal
Biden approves disaster proclamation in tornado-stricken Kentucky