ANZ has announced its role in supporting Victoria Power Networks’ first green bond, valued at A$750 million with a 6.5-year term. The transaction is believed to be the first of its kind aligned with the Australian Sustainable Finance Taxonomy, which was introduced in June, and also marks the first issuance by an Australian entity that aligns with the European Union Taxonomy.
ANZ served as joint lead manager and joint green structuring adviser for this deal. The green bond is structured under Victoria Power Networks’ Sustainable Financing Framework and aims to contribute to net zero emissions targets set by both the Australian and Victorian governments.
The issuance drew significant investor interest, resulting in the largest orderbook for Victoria Power Networks in the Australian dollar market and its biggest single tenor AMTN issuance so far.
Funds from the green bond will be used to finance low voltage network infrastructure, operational technology systems, and smart meters. These investments are intended to support the expansion of renewable electricity use and energy-efficient appliances across homes and businesses in Victoria.
Katharine Tapley, ANZ Global Head of Sustainable Finance, said: “This transaction demonstrates how the Australian Sustainable Finance Taxonomy can help businesses and communitities in the transition to net zero. We’re pleased to support our longstanding customer Victoria Power Networks to achieve what we understand is the first taxonomy-aligned issuance in Australia, and we hope this milestone encourages more of the same activity within the sector.
“The bond proceeds are expected to support a cleaner, more sustainable energy system by making it easier to use renewable energy, manage electricity use, and give people more control over how and when they use power.
“This deal also highlights ANZ’s ability to combine established financial products with sustainability expertise to deliver innovative solutions ultimately benefitting customers and the wider community.”
Victoria Power Networks owns CitiPower and Powercor, which supply electricity to over 1.2 million customers throughout Melbourne and regional Victoria. The company manages electricity distribution networks that are considered among the most efficient in Australia’s National Electricity Market.
Cath McCormack, Chief Financial Officer of Victoria Power Networks, said: “We are delighted to have partnered with ANZ on VPN’s inaugural green bond issuance—a landmark transaction for our business. Positive investor feedback has reinforced the value of our sustainable financing framework, aligning our future capital strategy with VPN’s long-term sustainability commitments and our ongoing role in Victoria’s energy transition.”