Westpac’s Social Tailored Deposit is aligned to the bank’s sustainable finance framework and has been designed to link with assets that meet the International Capital Market Association (ICMA) social bond principles.

Finance from the deposits will be directed to initiatives that promote access to essential services, affordable housing or accelerate socioeconomic advancement and empowerment.

Westpac Institutional Bank Chief Executive Nell Hutton said, “We’ve seen growing investor demand in sustainable investment options, and we see the Social Tailored Deposit as another important step in supporting customers that are committed to a sustainable future. We’re delighted to be launching this Australian-first deposit solution with three Westpac Institutional Bank clients: City of Sydney, University of Sydney and La Trobe University.”

City of Sydney Lord Mayor Clover Moore said, “This investment will support affordable housing projects and essential education, healthcare and transport services, while the returns help fund our long-term capital works program. Socially sustainable investment doesn’t just make financial sense, it’s the right thing to do. We hope to set an example and send a signal to the broader market that we support the development of more socially sustainable investment options.”

University of Sydney Vice-President (Operations) Nicole Gower said, “We’re continually looking for ways to improve how we incorporate environmental, social and governance factors in our investments, and look forward to seeing how our Social Tailored Deposit with Westpac performs and contributes to improving social outcomes and sustainability across a range of measures.”

La Trobe University Chief Operating Officer and Vice President (Operations) Mark Smith said, “At La Trobe University, we are focused on embedding sustainability into every aspect of our operations, working with our students, staff, and our community. Our commitment is exemplified by the Social Tailored Deposit, a responsible investment product that aligns perfectly with our Sustainable Finance Framework, allowing us to wisely invest surplus cashflow.”

Westpac’s Social Tailored Deposit follows its successful launch in 2018 of the world’s first Green Tailored Deposit certified by the internationally recognised Climate Bonds Initiative. Today more than 100 investors have invested almost $2bn[1]linked to assets including renewable energy, low carbon transport, low carbon buildings and water infrastructure.

Just like the Green Tailored Deposit, the Social Tailored Deposit is expected to be popular with government and public sector investors, as well as investors with a social mandate. It is designed to meet the needs of investors across institutional, business and private banking.

Global sustainable investment research, ratings and data provider Morningstar Sustainalytics provided a second-party opinion on the deposit.

Commenting on the deposit, Morningstar Sustainalytics’ Head of Sustainable Fixed Income Research Barbara Lambotte said, “The Westpac Social Tailored Deposit is the first framework that Morningstar Sustainalytics has opined on, both in Australia and globally, that is solely dedicated to the issuance of social deposit products. Based on our assessment, Morningstar Sustainalytics is confident that Westpac is well positioned to issue social tailored deposits and that the Westpac Social Tailored Deposit is credible, impactful and aligns with the core components of the Social Bond Principles 2023.”

[1] $1,966bn as at 30 September 2024

Under the agreement Westpac will continue to provide transaction banking, merchant acquiring and liquidity management services, and will add public transport payments and commercial cards, including dynamic virtual cards, to its remit. In addition, the State will utilise Westpac’s DataX insights to help inform government decision making.

“Westpac has a long, shared history with New South Wales,” said Nell Hutton, Chief Executive, Westpac Institutional Bank. “Together we’ve navigated challenging economic times to help maintain the State’s financial resilience, transformed payments services and helped optimise the State’s balance sheet.

“In recent years we’ve facilitated critical payments quickly and securely to the people of NSW during some very challenging times, including COVID-19 and the devastating bushfires of 2019-20, and floods of 2022.

“We’re excited about the next phase of our relationship, partnering with the NSW Government as it increases the supply of new homes to solve the housing challenge and builds the infrastructure that makes this state a world class place to live and invest, as well as supporting the climate transition.

“We’re looking forward to working together to help people and businesses through the rapid modernisation of our payments system, including the move away from cheques and bulk electronic clearing system in the next 3-5 years. This will mean paying for everyday services such as your licence, car registration and kids school fees will be easier for everyone in New South Wales.

“We’re very proud of our continued partnership with the NSW Government, which underscores Westpac’s dedication to supporting the prosperity of the economy and the people of New South Wales.”

Westpac’s significant investment in the long-term future of payments is set to transform the way services are accessed and utilised. By leveraging its proprietary technology, Westpac is committed to making payments more inclusive, faster, and safer for all. These advancements will enhance the efficiency of payments and ensure that financial services are within reach for every individual and business in New South Wales.

Westpac is the leading banking partner for the Australian and New Zealand public sector.

The new contract commences on 1 April 2025 with a five-year term, with a further 2 x three-year option.