Victoria Power Networks has completed an AUD 750 million dual-tranche (fixed and floating) transaction in October 2025 that generated an orderbook of more than AUD 2.45 billion and established two simultaneous market firsts. The bond is the first Australian green bond to achieve alignment with the Australian Sustainable Finance Taxonomy, and the first bond issued by any Australian entity to satisfy EU taxonomy alignment criteria. Westpac acted as joint Green Structuring Adviser (alongside ANZ) and Joint Lead Manager on the transaction, which carries a tenor of six and a half years.
Proceeds from the issuance are earmarked to fund grid decarbonisation and the integration of renewable energy into Victoria's electricity distribution network, supporting the state government's 2045 net-zero target.
THE TWO TAXONOMIES
The Australian taxonomy, developed to provide a locally relevant and science-based classification of environmentally sustainable economic activities, was designed to give both domestic and international investors a consistent framework for evaluating green credentials.
The EU taxonomy requires that financed activities meet detailed technical screening criteria and satisfy 'do no significant harm' tests across multiple environmental objectives.
THE ISSUER
Victoria Power Networks operates electrical distribution infrastructure across large parts of Victoria.
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