NBN Co is using its plan to push fibre further out into its network as the basis for “green bond” issuance.
A green bond issue in Europe has brought NBN Co $2.1 billion, the proceeds of which the infrastructure owner says will be “fully allocated to eligible green projects”.
The company explained that one of its commitments in its 2023 corporate plan is to deliver emissions reductions “consistent with meeting or exceeding” the Australian government’s 2050 net zero target.
“NBN Co has committed to set long-term company-wide emissions reductions targets in line with science-based net zero with the Science-Based Targets initiative (SBTi)”, it said.
“NBN Co’s near-term emission reduction targets are currently pending validation by the SBTi.”
It’s the second green bond issuance from NBN Co, the first being made in Australia under a medium term note program that raised a total of $800 million in April 2022.
The company’s commitment to reducing emissions was underscored by the government’s December 2022 revised statement of expectations.
NBN Co’s executive general manager group treasury, Fiona Trigona, explained that the statement “includes an expectation that we deliver greenhouse gas emissions reductions consistent with meeting or exceeding the Government’s commitment to net zero emissions by 2050”.
She explained that the emissions reduction targets are “in line with the latest climate science”, and centre around taking fibre “deeper into communities” to reduce electricity consumption.
BNP Paribas, Citi, Deutsche Bank and HSBC were the lead managers for the Euro-denominated green bond benchmark offering.
