Sunday, September 25, 2022
HomeMortgageCBA launches worldwide foreign money time period deposits

CBA launches worldwide foreign money time period deposits


Commonwealth Financial institution of Australia has raised greater than $1.5 billion in funding via its Environmental, Social and Governance Time period Deposit product.

The ESG TD allows institutional depositors to align their money administration methods with their sustainability targets.

Launched in December 2021, ESG TD offers institutional depositors with the chance to finance CBA’s portfolio of sustainability-linked loans (SLLs), which incentivise firms to realize improved ESG outcomes.

Following the success of the Australian dollar-denominated product, the ESG TD program is being expanded to supply deposits denominated in foreign currency together with US {dollars} and Euros.

CBA group govt, institutional banking and markets Andrew Hinchliff (pictured) mentioned ESG TDs supplied one other supply of funding for Australia’s transition to a extra sustainable financial system.

“Entry to institutional capital is crucial for Australia’s transition to a extra sustainable future,” Hinchliff mentioned.

“We’re proud that our revolutionary sustainable finance merchandise are serving to join swimming pools of capital to help the work of organisations transitioning their operations to be extra sustainable.”

Learn extra: Main financial institution raises rate of interest

Hinchliff mentioned CBA had skilled distinctive inflows for the ESG TD product in simply six months.

“This demonstrates the robust urge for food amongst our purchasers to help Australia’s sustainability journey,” he mentioned. “It has created a big new supply of funding for our SLLs portfolio, extending our potential to finance new alternatives for purchasers.”

Like a standard time period deposit, ESG TDs provide depositors a hard and fast charge of return with a dedication from CBA to completely allocate the proceeds of those deposits towards the financial institution’s rising portfolio of SLLs.

CBA’s govt normal supervisor, international markets Chris McLachlan mentioned the brand new overseas foreign money functionality expanded the enchantment of CBA’s ESG TDs to worldwide clients managing multi-currency portfolios.

“We’re dedicated to continued innovation in sustainable finance and taking part in a number one position in financing Australia’s transition to a low carbon financial system,” McLachlan mentioned.

Learn extra: How excessive will the RBA charge go?

CBA’s institutional gross sales managing director Anthony Kritikides mentioned the success of the ESG time period deposit was pushed by natural development.

“We’ve had robust consumer engagement on this product throughout a large suite of market individuals from tremendous funds, asset managers and native councils, to extra just lately company purchasers looking for significant ESG money administration options,” Kritikides mentioned.

“We’re proud to supply one other avenue for purchasers to help Australia’s transition.”

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