TCV Sustainability Bonds

TCV Sustainability Bonds

TCV Sustainability Instruments are employed for the financing, and re-financing, of Green and/or Social projects and assets ('Eligible Projects') across Victoria, which are funded through TCV ‘Participating Authorities’ (within the meaning of the Treasury Corporation of Victoria Act 1992), Victorian Government Departments and State related entities.

To this effect, TCV has developed a Sustainability Bond Framework to outline the governance framework under which TCV intends to issue and manage Green, Social and Sustainability Bonds.

The TCV Sustainability Bond Framework sets out the process by which TCV intends to issue and manage sustainability instruments on an ongoing basis to finance, and re-finance projects and assets across Victoria, which are consistent with delivering a low carbon and climate resilient economy and/or delivering positive social outcomes for Victorian communities.

The TCV Sustainability Bond Framework may be subsequently updated at TCV’s discretion as relevant market standards and best practice continue to evolve over time.

The 'Sustainability Instruments' issued under the framework may include:

• TCV Green Bonds in accordance with the ICMA Green Bond Principles, and, at TCVs discretion, the Climate Bonds Standard
• TCV Social Bonds in accordance with the ICMA Social Bond Principle, and
• TCV Sustainability Bonds in accordance with the ICMA Sustainability Bond Guidelines.

In September 2021, TCV launched its inaugural Sustainability Bond Issuance as part of an ongoing issuance program. Key details are listed below:

Reporting and assurance

TCV understands the importance of transparency and disclosure and will publish a TCV Sustainability Instrument Report on an annual basis, containing Use of Proceeds reporting, Impact reporting, and assurance updates.

TCV intends for annual Use of Proceeds reporting to include:

• summary of Eligible Projects
• confirmation of aggregated amount of proceeds
• the allocation of proceeds per Eligible Project, and the relevant Use of Proceeds category for each
• disclosure of any unallocated proceeds
• confirmation of accordance with applicable market standards, including where relevant ICMA Principles and/or the Climate Bonds Standard (version 3.0)
• confirmation of annual assurance.

Impact reporting

TCV may also report on relevant environmental or social impact metrics where feasible. This impact reporting will endeavour to be aligned with ICMA guidance on impact reporting.

Assurance

TCV has obtained a pre-issuance verification for the first Sustainability Instrument issuance under the TCV Sustainability Bond Framework. Pre-issuance verification may also be obtained for subsequent Sustainability Instruments issuance, at TCV’s discretion.

On an annual post-issuance basis, TCV will obtain independent verification of the annual TCV Sustainability Instrument Report, and will obtain assurance that each outstanding TCV Sustainability Instrument is in compliance with the Framework, the ICMA principles, and where relevant, the Climate Bond Standards.

Key details are listed below:

Issuance