Victoria Power Networks has issued an A$750 million green bond, marking Australia's first taxonomy-aligned transaction, to facilitate investments in infrastructure supporting renewable energy and sustainability efforts.

Information on the Target

Victoria Power Networks serves as the parent company for electricity distribution entities CitiPower and Powercor, collectively providing electric service to over 1.2 million customers in Melbourne and regional Victoria. The company manages and operates the infrastructure, including poles and wires, essential for delivering electricity to these customers. The networks administered by CitiPower and Powercor are recognized for their efficiency within the National Electricity Market.

Industry Overview in Australia

The Australian energy sector is undergoing a significant transformation aimed at enhancing sustainability and reducing reliance on fossil fuels. As the country prioritizes transitioning toward renewable energy sources, there has been a marked increase in the implementation of policies supporting the shift to net zero emissions. The launch of the Australian Sustainable Finance Taxonomy is a critical step that delineates a framework for aligning financial services with sustainability goals.

Victoria, as a leading state commit to renewable energy, has embraced several regulatory measures to promote clean technologies. This includes the introduction of incentives and financing solutions encouraging