(Bloomberg) -- Add “wellbeing bonds” to the growing list of debt instruments for the financing of do-good projects that are surging in popularity worldwide.
Housing New Zealand Ltd., a government agency responsible for managing public accommodation, priced NZ$600 million ($386 million) of such notes on Wednesday. It describes the securities as sustainability bonds that are also aligned with the government's framework to increase New Zealanders' wellbeing in areas such as work, housing and health.
The bonds are a new instrument that's part of HNZ's sustainability financing framework to raise funds “to build more warm, dry and healthy homes,” Matthew Needham, the Wellington-based organization's chief financial officer, said by email.
Global sales of sustainable debt including green bonds are jumping on the back of strong demand from buyers, who are attracted by the prospect of contributing to projects that have environmental or social objectives, and that also look good from a public image perspective. Issuance of sustainable finance looks set for another record year in 2019 with more than $360 billion in deals likely, according to BloombergNEF.
New Zealand's Ardern Ramps Up Spending in Her ‘Wellbeing' Budget
The government of New Zealand introduced a bill on Wednesday that will require future administrations to set wellness objectives and explain how those goals will guide the development of its budget. Prime Minister Jacinda Ardern's 2019 wellbeing budget includes funds for areas such as mental health services, support for children, and helping startup firms.
The wellbeing bonds are similar to sustainability notes that HNZ sold in March, but more explicitly align with the government's living standards framework, Needham said.
To contact the reporter on this story: Ken McCallum in Tokyo at kmccallum4@bloomberg.net
To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Beth Thomas, Finbarr Flynn
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