In October 2025, Victoria Power Networks (VPN) raised AUD750 million ($520 million) through its inaugural green bond – the first issuance aligned with the newly launched Australian Sustainable Finance Taxonomy.

The six-and-a-half-year transaction comprised a AUD450 million fixed-rate tranche with a 4.714% coupon, and a AUD300 million floating-rate tranche with a coupon rate of 107 basis points over the three-month Bank Bill Swap Rate (BBSW).

The deal marks a milestone as both the first Australian Taxonomy-aligned issuance and the first EU Taxonomy-aligned issuance by an Australian entity¹. It follows the June release of the Australian Sustainable Finance Taxonomy, which introduces science-based definitions for green and transition activities, particularly in hard-to-abate sectors.

VPN's framework identifies electricity transmission, distribution, and storage as eligible activities under both taxonomies.

Proceeds will fund projects expected to deliver decarbonisation and climate resilience benefits, including bushfire mitigation and infrastructure hardening, as well as social co-benefits, such as energy equity and job creation.

VPN will publish an annual Green Project Register outlining each project's description, value, financing status and age where applicable, alongside the share of allocated and unallocated proceeds. It will also produce annual allocation reporting for outstanding green instruments, supported by assurance or verification within 24 months of issuance, and annually thereafter.

Judges commented on the "great green bond structure and focus of climate mitigation, by combining RE [renewable energy], EE [energy efficiency] and grid infrastructure in one use-of-proceeds set up". They also praised the "alignment with international frameworks".

1- Technical Screening Criteria Only