NBN raises AUD $850m in record sustainability bond

NBN Co has raised AUD $850 million from its first domestic sustainability bond, marking its largest Australian dollar 10-year bond deal and its tightest pricing for that tenor.

The issue was structured as a 10-year Australian Medium-Term Note in sustainability format. The bond was priced on 12 March 2026 and settled on 19 March 2026.

Demand came from domestic accounts and investors across Asia. The order book was heavily oversubscribed and a record for an AUD 10-year bond from NBN Co.

The sale came amid heightened volatility in global financial markets and a busy domestic primary market with limited issuance windows. The bond was the first AUD primary transaction to price since 26 February 2026.

Use of proceeds

NBN Co will allocate net proceeds to eligible green and social projects under its Sustainability Bond Framework, including investment in energy-efficient fibre deployment and its nbn Fixed Wireless network.

These areas align with NBN Co's broader program of network upgrades and fibre expansion. The company is upgrading its network technologies and continuing a national rollout of high-speed fibre, which it says is designed to improve resilience, reliability, and speed.

The bond adds to NBN Co's labelled funding. The company said the deal increases its total outstanding green or sustainable financing to about AUD $9.5 billion in equivalent terms and marks its tenth sustainable-format transaction since it launched its first green bond in 2022.

NBN Co described the transaction as the largest Australian corporate sustainability bond issued in the domestic debt capital market to date, citing it as evidence of investor appetite for sustainable financing and its sustainability program.

Investor engagement

Fiona Trigona, Executive General Manager and Group Treasurer at NBN Co, highlighted the market backdrop and the company's execution approach.

"We're immensely proud to have received such a positive reaction to our first-ever Sustainability Bond offering in the domestic market. This transaction demonstrates the strength of our execution in an exceptionally busy and volatile market environment. As the first AUD primary deal to price since 26 February 2026, we moved decisively following a brief pause ahead of issuance, driven by escalating geopolitical tensions," she said.

"Importantly, the extensive marketing campaign undertaken for our inaugural domestic Sustainability Bond meant that investors were already highly engaged, allowing us to proceed directly to Indications of Interest and bypass the traditional marketing phases. This strategy enabled us to achieve a highly successful outcome despite the softer market backdrop," Trigona added.

NBN Co said the deal demonstrated depth and diversification in its investor base and reflected interest in sustainable financing across its investor community.

Network energy measures

Alongside the funding update, NBN Co highlighted recent energy and renewables measures linked to its network operations. The company said it met its commitment to implement projects that reduce the nbn network's annual energy use by 25 gigawatt-hours by December 2025.

It also said its third power purchase agreement took effect in December 2025 at the Munna Creek Solar Farm on the Sunshine Coast, coinciding with its commitment to 100% renewable electricity purchases from that date.

NBN Co also cited external and commissioned research on the social effects associated with broadband access delivered via its network. It cited a report by Ember Advisors, released in February 2026, which it said linked broadband access to outcomes in employment, education, health, and well-being.

It also cited findings from the 'nbn Social Impact of the nbn FY25 Insights Report', which it said found that 77% of nbn users reported that having the nbn network at home had a positive impact on their satisfaction with life.

Proceeds from the new sustainability bond will be directed to eligible investments under the framework, including energy-efficient fibre deployment and the fixed wireless network.