Australia’s Wesfarmers advances sustainability bond market

The company has issued the first sustainability-linked bond into the Australian-dollar medium-term note market.

Wesfarmers has closed a milestone transaction which paves the way for other issuers to tap this emerging format in the local bond market.

As part of this sustainability-linked bond, Wesfarmers has committed to obtain all of the energy requirements for its Bunnings, Kmart Group and Officeworks retail businesses from renewable sources by the end of 2025. The company has also committed to limit the average emissions intensity of its ammonium nitrate production plant to 0.25 tonne of carbon dioxide equivalent CO2e per tonne.

The coupon will step up by a maximum 25 basis points at the trigger date if the commitments are not met.

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