Commonwealth Bank of Australia issued its first climate certified bond, raising A$650 million to fund renewable projects.

The bank said March 29 that the bond is backed by more than A$1 billion of domestic renewable and low-carbon projects that meet the Climate Bonds Initiative's climate bond standards.

The five-year bond was offered in both fixed and floating rate tranches with a return of 92 basis points above the relevant reference rates at the time of pricing.

The proceeds from the issuance will fund 12 eligible Australian projects, including renewable energy generation through solar, wind and hydro power.

Commonwealth Bank of Australia acted as the sole lead arranger for the transaction.

As of March 29, US$1 was equivalent to A$1.31.