Insurer says bond issuance will enable investment in green buildings, renewable energy, and clean transportation projects
Just Group has launched its inaugural green bond, raising £250m and becoming the first UK insurer to launch such an asset.
The company said it was seeking to "act decisively""while recognising that the UK financial services industry has a "crucial role" to play in the transition to a low-carbon economy.
It added that the approach was relevant both for the services and products it provides, but also in the financial assets it manages and invests in.
The bond is sterling-denominated and BBB-rated, maturing on 15 April 2031 with a reset date set for 15 April 2026. It will pay an annual interest rate of seven per cent up to the reset date, payable semi-annually in arrears.
The insurer said the equivalent amount of investment in the green bond will be allocated to investment in green buildings, renewable energy, and clean transportation projects.
Chief executive David Richardson said Just had "always been a market disruptor", with the firm having previously having invested £360m in offshore wind and solar funds, and over £250m in social housing and local authority loans.
"ESG factors have long been a prime consideration in our investment decisions and are reflected in our significant financing of renewable energy, such as the Walsey and Hornsea wind projects and other positive social impact investments," he said.
"The launch of the UK's first ever green lifetime mortgage also reflected our innovative approach to adapting products and services to support our customers who are looking for ways to make positive changes to their environmental footprint.
"The financial services sector bears a weighty responsibility in leading the country towards a more sustainable way of life, and the green bond enshrines our commitment to supporting the transition to a low-carbon global economy."
This article first appeared at Professional Pensions
All the green business news from around the world this week
Waitrose and John Lewis bring forward net zero goal by 15 years as group outlines new food waste and online delivery strategies
Commendation at the AOP Awards follows hugely successful year for BusinessGreen as the wider green economy embarks on critical decade
Plans for 'comprehensive' policy document that sets out pathway to net zero emission economy confirmed in government's formal response to CCC's latest progress report