Suncorp NZ’s wellbeing funds under management now at $20M
Suncorp New Zealand has now invested a total of $20 million into wellbeing bonds as part of its focus on identifying sustainable investment opportunities that can deliver positive community outcomes.
The insurer recently purchased wellbeing bonds worth $6M. The bonds were issued by Housing New Zealand, as part of its broader Sustainability Financing Framework, and are a type of sustainability bond which helps fund investment in new or upgraded sustainable social housing. Purchase of the Housing New Zealand wellbeing bonds brings Suncorp New Zealand’s total wellbeing funds under management to $2OM.
“We’ve chosen to invest in the bonds because access to affordable housing helps build strong, resilient communities. Investing in these types of bonds will help Housing New Zealand develop more healthy, sustainable homes,” says Jimmy Higgins, Chief Financial Officer, Suncorp New Zealand.
Housing New Zealand intends to allocate the net proceeds from the bonds to finance or refinance eligible projects such as building green and affordable housing. The projects are aligned to the Living Standards Framework and support or contribute towards meeting the United Nations Sustainable Development Goals.
‘Our investment lens is increasingly focused on opportunities that can deliver positive social outcomes. Wellbeing bonds are an important instrument in achieving this,” says Mr Higgins.
Suncorp New Zealand’s commitment to responsible financial services
Suncorp New Zealand looks for business opportunities that have a positive social or environmental impact. In this instance, the bonds purchased align to the New Zealand Treasury’s Living Standards Framework.
We are focusing our effort on enabling the financial, social and natural hazard resilience of people and communities. We are lowering our environmental impact by reducing our greenhouse gas emissions and helping our customers prepare for the physical impacts of climate change. Find out about Suncorp’s responsible investing approach here.
Sustainability bonds have a specific focus on delivering environmental or social good benefits.
In this instance, buildings constructed via financing generated from Housing New Zealand’s Wellbeing Bonds issuance will meet specific green building standards, together with pollution prevention and control guidelines. The bonds provide interest payments, have a high credit rating and are backed by the New Zealand Government.