The five-year bond was purchased by superannuation funds and groups based in Australia, the UK, Hong Kong, Singapore, Switzerland, Korea and Taiwan that focus on socially responsible assets.

Foreign and Australian investors have poured A$500 million ($385.3 million) into the first ever social bond promoting workplace gender equality, priced by National Australia Bank.

The proceeds from the bond will go to Australian businesses funded by NAB that support women in leadership roles. To qualify, organisations must also be cited by the Workplace Gender Equality Agency (WGEA) as an Employer of Choice for Gender Equality.

“There are proven links between diversity and better business profits that can’t be ignored,” said Cathryn Carver, acting chief customer officer, corporate and institutional banking.

According to a report from McKinsey & Company, companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians. Carver said gender equality is one of the many big issues that banks and investors can help address.

“This bond creates a new pathway for big investors to back the workplaces that are taking a leadership role to support women and equality,” Carver added.

The five-year bond was purchased by superannuation funds and groups based in Australia, the UK, Hong Kong, Singapore, Switzerland, Korea and Taiwan that focus on socially responsible assets.

“Successfully launching this bond is a critical step forward in building a market for socially responsible investments, and in elevating gender equality as a business imperative,” said Eva Zileli, head of group funding. “Investors increasingly want choices and options to act on social issues and we are finding ways to make that happen.”

The organisations included in the initial bond portfolio are Lend Lease, Mirvac, Stockland, Monash University, Australian Catholic University, PwC, KPMG Australia, King & Wood Mallesons (Australia), Clayton Utz, Gilbert + Tobin, Minter Ellison, Corrs Chambers Westgarth, Ashurst Australia and Henry Davis York.

The five-year, fixed rate bond is priced at semi quarterly asset swap plus 95 basis points, yielding 3.445 per cent. It is rated Aa2 (Neg) / AA- (Neg), (Moody’s/S&P) and has the same credit quality and profile as any other senior unsecured bond issued by NAB.