NBN Co has raised €1.35 billion (A$2.1 billion) from issuing European Green bonds for energy efficiency initiatives.
According to the National Broadband Network (NBN) builder, this makes it the first Australian government business enterprise to issue Green bonds in Europe.
Green bonds are a type of sellable bond that sees the proceeds used on environmentally-focused projects. In this case, the funds will be allocated in line with its Sustainability Bond Framework, which was established in February 2022.
Specifically, this includes deploying the NBN with a “more energy-efficient technology such as fixed line fibre optic connection instead of legacy technology (i.e. copper)”.
Also covered is the purchasing of renewable electricity to power its network and infrastructure in line with its RE100 membership – a body which focuses on the commitment to using 100 per cent renewable energy.
“Our network investment plan is taking energy-efficient fibre deeper into communities to meet the growing digital demands of Australia’s homes and businesses,” said Fiona Trigona, executive general manager group treasurer of NBN Co.
“Fibre is inherently more capable of delivering faster upload and download speeds and is generally more reliable than copper connections.
“Embedding sustainability across the company’s activities supports our purpose to lift the digital capability of Australia, enabling long-term social, economic and environmental benefits for our people, customers, communities, partners and country.”
This isn’t the first time NBN Co has issued green bonds, with the network builder previously issuing $800 million in Green bonds during the 2022 financial year.