[TOP STORY] Banks investing in green bonds

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[LISTEN] If banks incentivised customers to take out or add to bonds for solar panels or, say, a water-reticulation system, there could be a big market there: says investment analyst craigivy10 on MoneywebNow with SimonPB . Download the podcast

SIMON BROWN: I’m chatting now with Craig Ivy, investment analyst at Futuregrowth [Asset Management]. Craig, I appreciate the early morning time talking green bonds. I want to get to the home-loan part, but we’ll get there in a moment. Green bonds – when people hear that, they are typically going to think ‘renewable energy’, maybe ‘water’.

CRAIG IVY: Yes, that’s what we think is going to happen. I think from the investor side [one of] the two benefits that you get is [that] there’s now a lot more transparency that you see coming through. Previously a corporate would borrow money and then it would be used for general corporate purposes. Now the banks actually have some disclosure, so they say that the proceeds being raised are going to this project, this renewable project, and they’re providing annual disclosure.

SIMON BROWN: That’s a point that really struck me. If you want to do solar, whether it’s off-grid or grid-tied, or maybe you’d just want some battery backup for the load shedding, most people are going to have to raid their current bond, perhaps get some cash out of that [or] maybe their credit card. But it depends on size.

 

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