Pendal invests to boost social, low-carbon transportation pipelines

Pendal Group is investing in ANZ's sustainable bond and MTR Corporation's inaugural green bond to support social and environmental projects, while scaling low-carbon transport projects via its actively managed funds.

Both investments are conducted with the Regnan Credit Impact Trust and Pendal Sustainable Australian Fixed Interest Fund.

The investment in ANZ's Sustainable Development Goals (SDG) Bond 2031, which allocates proceeds toward a diversified portfolio of social and environmental lending activities aligned with the United Nations SDGs, will be used to fund or refinance eligible assets with "strong emphasis" on climate action, sustainable cities, clean energy and positive social outcomes.

With approximately 80% of proceeds allocated to environmental activities and 20% to social outcomes, around two thirds of funding have been directed to projects based in Australia, Pendal said.

The bond supports financing of more than 360 large scale renewable energy projects, including wind farms, solar projects and battery energy storage systems (BESS) across Australia, India, Hong Kong and other regions.

This includes the construction and operation of the 252-megawatt (MW) Wambo Stage I and 254 MW Wambo Stage II wind farms in south-east Queensland.

Meanwhile, the bond also contributed to the operation of specialist disability accommodation across Australia, comprising nearly 1000 beds, and a further 106 specialist disability accommodation homes with around 350 beds.

The bond has also supported the delivery of more than 1200 dwellings to be used as social and affordable housing.

Pendal said the investment allow investors to direct capital toward a wide range of activities that support climate stability, social inclusion and sustainable economic development.

Meantime, the investment in MTR Corporation's green bond provides exposure to the finances of eligible green investments under MTR's Sustainable Finance Framework, with proceeds expected to support a range of climate-aligned projects, the firm said.

This includes major rail line extensions in Hong Kong, station energy-efficiency upgrades, low-carbon building improvements, renewable energy installations, biodiversity and conservation initiatives, and climate-resilience works.

There are several near-term projects that will be funded through the issuance, including rail expansion programs in new growth districts, replacement of older rolling stock and equipment with efficient alternatives, and upgrades to station infrastructure reducing operational energy use.

The bond may also finance enhancements to MTR's extensive property portfolio, where the company is targeting substantial reductions in scope 1 and 2 emissions intensity by 2030, as well as water and waste-management improvements across its network, Pendal said.

These projects contribute to MTR's science-based targets, which include reducing well-to-wheel rail transport emissions by 46.2% per passenger-kilometre by 2030 and achieving carbon neutrality by 2050.