Victoria has become the first Government in Australia to issue Green Bonds, raising A$300 million to finance both new and existing projects delivering environmental benefits to the state.

The Victorian Green Bonds were issued by the Treasury Corporation of Victoria  (TVC) and are the first state or federal government issued bonds to receive international Climate Bond Certification anywhere in the world.

Launched on 18 July, the triple-A rated bond was fully subscribed in a little over 24 hours.

The total book order of A$300 million was supported by 17 investors, ranging from insurance companies, funds management groups, and investors with a specific green or socially responsible investment (SRI) mandate.

The bonds' proceeds will go to financing and refinancing Victorian Government investments in energy efficiency, renewable energy generation, low carbon public transport and water treatment.

These projects will include LED traffic lights, mini-hydroelectric power stations, low carbon buildings, the Melbourne Metro tunnel, new trains, and the development of a large scale renewable energy power station.

The Climate Bonds Initiative, based in London, certified the bond under its Climate Bond Standard and Certification Scheme, ensuring Green Bond proceeds are used in ways that are consistent with delivering a low carbon economy.