Uniting Financial Services announces inaugural SDG subordinated note issue
Uniting Financial Services is excited to announce that today three fund management firms have committed to invest a total of $30 million with us. They’re doing this because they recognise the financial strength of our operations, but also because they wish to support the way we go about implementing the Synod’s Ethical and ESG investment policy. Under that policy, our efforts qualify as contributing towards the UN’s Sustainable Development Goals (SDG), which have a substantial alignment with the long-held ethical principles of the Church. This is the first issue of an SDG Bond by a not-for-profit organisation in Australia.
We made this approach to the capital markets because UFS is continuing to diversify the source of funds that we have available to invest, to achieve our aim of providing financial leadership and support to the Church. For a long time, our investor base has only been from within the Church - the Synod (who have provided our capital), church organisations from across NSW & ACT who have at-call and fixed term debentures with us, as well as other Synods and many individuals who hold debentures with UFS as a way of supporting the Church’s mission. This year we’d already added one of the major banks, which has invested with us via a one year rolling funding facility and, now we can also count three fund managers among our partners.
The new issue is in a form of security that strengthens our operations through providing an improved level of capital adequacy. This is an important strategic target for UFS as we wish to ensure that we manage our business in line with best practice in the financial services sector.
The details of the investment are in the public announcement that we’ve also made, which is available here.