SA Power Networks issues Australia's first taxonomy-aligned green bond

SA Power Networks has issued its $300 million five-year green bond, marking the first to be fully aligned with the Australian Sustainable Finance Taxonomy.

SA Power Networks is South Australia's electricity distribution service provider, as the issuance underscores its role in supporting the decarbonisation of the state while delivering an essential service to its customers and community.

ANZ acted as joint lead manager and sole green bond coordinator on the transaction.

The deal follows SA Power Networks' updated sustainable financing framework, which enables the alignment of sustainable finance instruments with the Australian Sustainable Finance Taxonomy.

Commenting, SA Power Networks chief financial officer Scott Gillen said the alignment is critical to achieve sustainable goals and long-term capital returns.

"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," Gillen said.

"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."

Meanwhile, Australian Sustainable Finance Institute chief executive Kristy Graham added: "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."

ANZ head of global sustainable finance Katharine Tapley echoed both statements.

"We commend SA Power Networks for its leadership and ambition in setting a high bar for transparency and credibility in sustainable finance," Tapley said.

"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."

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 said.