NBN Co, Australia’s government-owned broadband provider launched last week a senior unsecured Australian-dollar green bond with an indicative yield of 5.3 per cent.
The five-year fixed rate debt raising closed at $850 million at a coupon of 5.2 percent according to the Australian Financial Review and was priced at a semi-quarterly coupon-matched asset swap plus 105 basis points.
NBN has an Aa3 (stable) rating from Moody’s and an AA (stable) Fitch rating.
Mizuho Bank, National Australia Bank, RBC Capital Markets and Westpac have been mandated as joint lead managers.
NBN earlier this month issued its performance summary for the FY23 year.
NBN Co generated total revenue of $5.27 billion in FY23, an increase of 3 per cent year-on-year, and EBITDA of $3.59 billion, a 15 per cent improvement on FY22. Both revenue and EBITDA were in line with guidance.
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The company’s net activations increased by approximately 43,000 premises in FY23 to take the total number of residential and business premises connected to services over the NBN network to approximately 8.56 million.
NBN Co successfully raised more than $5.69 billion in bank and capital markets debt during FY23, which included raising EUR 1.35 billion (AUD $2.13 billion) from its debut European Green Bonds issuance in March 2023. The proceeds from the European Green Bonds will be fully allocated to eligible green projects undertaken as part of the company’s commitment to energy efficiency in line with its Sustainability Bond Framework.
