SYDNEY, June 3 (Reuters) - The Australian government on Monday launched its first Green Treasury Bond through syndication, aiming for a sizable issue of around A$7 billion ($4.66 billion) given indications demand should be strong.

Initial price guidance for the 4.25% June 21, 2034 bond was set at a spread of -5 to -1 basis points to the implied bid yield for the primary 10-year Treasury Bond futures contract, the Australian Office of Financial Management (AOFM) said on Monday.

The issue is expected to be priced on Tuesday, and settle on Friday. The program enables investors to back public projects that drive Australia's transition to net zero emissions by 2050 and support environmental objectives.

The syndication is led by Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank, UBS' Australia Branch and Westpac Banking.

The AOFM said it would be mindful of the performance of the bond when considering the timing of future issuance, with tender offers considered from July onward.

($1 = 1.5017 Australian dollars) (Reporting by Wayne Cole; Editing by Christopher Cushing)