ANZ today announced it has supported SA Power Networks in the issuance of its latest A$300 million 5 year Green bond, marking the first transaction to be fully aligned with the Australian Sustainable Finance Taxonomy.
SA Power Networks is South Australia's electricity distribution service provider, and this landmark issuance underscores its role in supporting the decarbonisation of South Australia while delivering an essential service to its customers and community. Proceeds from the transaction will be allocated to eligible new and existing distribution assets aligned with the technical screening criteria set out in the taxonomy, including projects that enhance bushfire preparedness and strengthen grid resilience and reliability.
ANZ acted as Joint Lead Manager and Sole Green Bond Coordinator on the transaction.
The deal follows the publication of SA Power Networks' updated Sustainable Financing Framework, which enables the alignment of sustainable finance instruments with the Australian Sustainable Finance Taxonomy, reinforcing its leadership in sustainable finance.
ANZ Head of Global Sustainable Finance, Katharine Tapley, said: "SA Power Networks' latest Green bond represents a significant milestone for the Australian sustainable finance market as the first issuance to be fully aligned with the Australian Sustainable Finance Taxonomy.
"We commend SA Power Networks for its leadership and ambition in setting a high bar for transparency and credibility in sustainable finance. We hope this transaction encourages greater adoption of taxonomy-aligned structures, helping to set a consistent standard for the market and support the continued growth of sustainable capital flows."
SA Power Networks CFO, Scott Gillen, said: "I believe it is essential to align our financial goals with our environmental and social responsibilities to ensure long-term value creation for our customers, stakeholders, and the South Australian community. By aligning our financial strategy with our approach to sustainability, we can continue to help decarbonise our grid whilst achieving long-term financial success with appropriate returns for our owners and investors. We also recognise the growing importance investors place on Environmental, Social and Governance integration within their capital allocation decisions."
Australian Sustainable Finance Institute CEO, Kristy Graham, said: "This deal demonstrates how the taxonomy can be applied in practice, and we hope it helps catalyse further market adoption of taxonomy-aligned sustainable finance in Australia. As the first issuer to confirm alignment with the taxonomy's voluntary environmental and social safeguard criteria, SA Power Networks has demonstrated how a high integrity approach can be applied within the Australian market. This continues the strong market momentum behind the Australian Sustainable Finance Taxonomy which we hope will continue to bring credibility, rigor and growth to the sustainable finance market in Australia."
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