A new agreement will see $300 million in private funds invested in energy assets under a sector-leading Green Finance Framework.
Funding from the deal – the first to be made under the Framework – is intended to be used for electricity infrastructure assets, helping to ready them for increasing levels of renewable generation feeding into the grid.
General Manager, Corporate Finance, Luis Castillo-Melendez said his team had worked with global investment bank Mizuho Securities to make the private placement of the 8-year medium-term note (MTN).
“We established our Green Finance Framework with the purpose of giving confidence to investors that they could back projects aimed at making a difference in lowering carbon emissions, so we’re very pleased to see the first investment made,” Mr Castillo said.
“It will also help us to respond to our customers’ preferences for renewable energy, and with upgrades to the network, how they use energy.”
Simon Ward, Head of Debt Capital Markets, Australia at Mizuho said: “We are honoured to have executed this exemplary transaction – the first Green Bond by an Australian Utility in global markets”.
The Green Finance Framework applies to companies within the State Grid Singapore Power Australia Assets (SGSP Australia Assets) Group which include Jemena and engineering, project management, operations and maintenance company, Zinfra.
It aligns with Jemena announcing earlier this year its ambition to achieve net-zero emissions by 2050 and will see the business use funds raised from green instruments such as bonds, loans, and promissory