"Over the long term, this could well create an advantage in terms of valuation and business prospects, attracting investors with growing demand for assets that align with environmental, social and governance (ESG) principles."

NAB said its latest bond had attracted investment from socially responsible funds as well as mainstream investors, and was oversubscribed to nearly double its target.

"We are thinking outside the box when it comes to helping our customers back sustainable assets and act on environmental issues that are important to them, and to Australian communities," said Mike Baird, the former NSW premier, who now works for NAB.

"It’s incumbent on us as a bank to play a part in addressing the bigger issues facing society, including Australia’s transition to a low carbon economy; this transaction is another small, but important, step in that journey," he said.

The bond is also the world’s first RMBS containing a pool of both green and non-green securities and has been rated AAA by Moody’s Investors Services and Aaa by Fitch Ratings.