SA Power Networks first to use green bond to back transition
Financing milestone mobilises capital for sustainable grid infrastructure development
The CEFC has backed the first certified green bond issued by an Australian electricity distributor. The SA Power Networks green bond taps into the sustainable finance market to support South Australia’s transition to a decarbonised energy system.
$28 million
CEFC commitment
Landmark
green bond
Backing SA
green energy future
Like all electricity grids, we are already experiencing the physical impacts of our changing climate, so ensuring that we can continue to provide a safe, reliable, and resilient electricity supply is vital.Allison Purnell-SullivanSustainability Manager, SA Power Networks
Our investment
The CEFC has committed $28 million to the $495 million SA Power Networks certified green bond, reflecting its support for the green bonds market as well as Australia’s grid transformation.
SA Power Networks is the sole electricity network building, maintaining and supplying power to more than 1.7 million people living and working in South Australia.
SA Power Networks is the first Australian electricity distributor to issue a certified green bond and it will draw on the issuance to finance or refinance new or existing distribution assets that support South Australia’s transition to a distributed and decarbonised energy system.
Additionally, funds will be allocated to adaptation and resilience projects, such as network bushfire readiness, to maintain and enhance grid resilience and reliability.
By securing certification under the Climate Bonds Standard ‘electrical and grids and storage’ criteria for this issuance, SA Power Networks is demonstrating how the electricity distribution sector can tap into the growing global pool of sustainable finance. As an experienced investor in green bonds, we are pleased to have supported SA Power Networks in bringing this new investment product to market.Richard LovellExecutive Director - Debt Markets, CEFC
OUR IMPACT
Investing to lead the energy transition
Australia’s electricity system is undergoing a seismic transition as carbon intensive and ageing generators are replaced by lower cost, low emissions renewable energy and storage. This requires considerable investment.
South Australia is leading the energy transition, with global acknowledgement of its progress in renewable energy and large-scale storage. Renewable energy accounted for 71 per cent of South Australia’s total generation in 2022,1 and the State, which is on track to achieve 100 per cent net renewables by 2030, is aspiring to meet that target by 2027.2
Aligning finance with environmental outcomes
The issuance of the SA Power Networks green bond follows the release of its Sustainable Financing Framework which outlines the company’s commitment to integrating sustainability principles into its financing activities. The Framework is the guiding document for how the electricity distributor intends to borrow, issue and manage sustainable debt across its operations.
SA Power Networks' issuance of its first Certified green bond marks a significant step in aligning financial strategies with environmental goals. This Certification under the Climate Bonds Standard highlights a commitment to robust science-based criteria and transparency in the utilities sector.Sean KidneyCEO, Climate Bonds Initiative
