NBN raises $1.2 billion to boost sustainable & digital inclusion

NBN Co has raised AUD $1.2 billion (EUR 700 million) through its first Sustainability Bond to support eligible green and social projects.

The transaction marks the first EUR-denominated use-of-proceeds Sustainability Bond issued by an Australian corporate, and will fund investments in energy-efficient fibre deployment and the nbn Fixed Wireless network.

According to NBN Co, net proceeds from the bond will be directed towards the roll-out of energy-efficient fibre infrastructure, which is more energy efficient for the company than copper, and to the Fixed Wireless network, supporting access to essential services and advancing digital skills in regional and remote communities.

The 7.5-year bond was issued in the European debt capital markets and, based on the order book, drew substantial interest in Europe and Asia, indicating significant investor appetite for sustainable finance aligned with NBN Co's sustainability objectives.

Fiona Trigona, Executive General Manager, Group Treasurer at NBN Co, said: "We're immensely proud to receive such a positive reaction to our first ever Sustainability Bond offering.

"The nbn network is critical digital infrastructure which carries 80% of the nation's data and supports the needs of over 20 million people every day.

"Through ongoing investments in delivering a faster, more sustainable and resilient network, NBN Co is helping drive the nation's productivity and, as a result, delivering important economic and social impacts to communities across Australia."

NBN Co anticipates that at least 80% of the bond proceeds will be dedicated to green projects linked to fibre network development, with the remainder supporting social projects such as improved access to essential digital services via the Fixed Wireless network to promote digital inclusion in underserved areas.

This issuance brings NBN Co's total outstanding green and sustainable financing to more than AUD $8.6 billion equivalent, reinforcing its position as the largest Australian corporate issuer in this format both domestically and internationally. The company has now completed nine transactions in sustainable or green formats since 2022.

Philip Knox, Chief Financial Officer at NBN Co, said: "Our Sustainability Bond issuance was enhanced by NBN Co recently receiving a provisional ESG rating of (p) 'AA' (as of May 2025) from the global accreditor MSCI, validating our Environment, Social and Governance credentials, which resonated with investors."

Research by Ember Advisors released in March 2025 highlights the nbn network's impact on digital inclusion, employment, education, health, and wellbeing. According to the nbn Social Impact Measurement FY24 report, 76% of users reported that access to nbn at home made a positive impact on their life satisfaction, with similar results seen in regional and remote areas.

NBN Co is making continued investments in high-speed fibre connections to meet growing data demands and to deliver a more resilient and energy-efficient network. In January 2025, the company announced upgrades to the remaining Fibre to the Node network, supported by up to AUD $3 billion in equity from the Australian Government and over AUD $800 million from the company itself. This will impact about 622,000 homes and businesses, with more than half based in regional Australia.

More than 95% of these premises are expected to have the option to upgrade to nbn Fibre to the Premises; the remainder will undergo design work to confirm their upgrade path. This move is part of broader efforts to provide approximately 90% of the nbn fixed line network with access to the fastest residential wholesale speeds by the end of 2025.

Thus far, over 9 million households and businesses, including more than 4 million eligible for fibre upgrades, have been enabled with these speeds. Investments in Fixed Wireless and Satellite announced in 2022, including a AUD $750 million co-investment with the Commonwealth, have enabled network upgrades using 4G, 5G, and mmWave technologies, benefitting more than 800,000 remote and regional households and businesses.

Currently, Fixed Wireless Home Fast is available to approximately 90% of the expanded footprint, offering peak wholesale download speeds of 200-250 Mbps, while Fixed Wireless Superfast reaches about 80%, with peak speeds up to 400 Mbps.

NBN Co's environmental initiatives include a recently announced commitment to achieve net-zero greenhouse gas emissions across operations and the value chain by 2045, validated by the Science Based Targets initiative (SBTi). The target accelerates previous reduction ambitions, focusing on a 95% reduction in scope 1 and 2 emissions from FY30 to FY45 based on a FY21 baseline, and a 90% reduction in scope 3 emissions over the same period.

The company's near-term SBTi-validated targets also include a 95% reduction in scope 1 and 2 emissions and a 60% per-device reduction in scope 3 emissions by FY30. In addition, NBN Co aims for 80% of its suppliers by spend to have science-based targets by FY27.