Infrastructure Debt Fund

The Australian Ethical Infrastructure Debt Fund (the ‘Fund’) returned 7.2% net of fees for the year, delivering 3.4% outperformance against the benchmark return of 3.8%. Performance was driven predominantly by income from its underlying loans and securities. During the period, the RBA’s Cash Rate Target also decreased 75bps to 3.6%. During the year the Fund committed to five new investments, and refinanced two existing loans across solar, wind, storage and decarbonisation. This brings the Fund’s direct and indirect exposure to 45 underlying projects in total.  

We have updated the Fund’s investment objective and eligible investment sectors to ensure that it most appropriately reflects the market opportunity and investment landscape. Based on the Fund’s performance as well as our investment pipeline and market outlook, we have updated the return objective to “delivering returns above 3%” per annum (after fees and expenses) over a five-year period (rather than the previous 2-3% objective). In response to changing market dynamics we have also included a focus sector relating to decarbonisation assets, such as electric vehicle charging networks, and electrification upgrades, as part of our investment strategy. Please refer to the latest Information Memorandum on our website for more information on these changes.  

The Fund has a specific objective of supporting Australian projects that generate positive, measurable social and environmental impact alongside a financial return. Over the last 12 months to September 2025, assets within the portfolio generated over 1.5 million megawatt hours of clean energy and helped avoid over 850,000 tonnes of carbon emissions. This is the equivalent to powering more than 280,000 households over the period.¹

Wholesale electricity prices were, on average, lower in 2025, compared to the elevated prices observed in the prior year. Coming off those elevated prices, the first quarter of 2025 saw prices stabilise despite increased operational demand thanks to higher renewable energy availability amongst other things. Isolated periods of cold and still conditions together with coal plant outages saw prices spike in the second quarter, though the remainder of the year prices was more muted as a result of record renewable energy output, as well as battery discharge.  Spot prices for Large Generation Certificates (LGC) continued to trend downward over 2025, due to new renewable supply coming online and reduced demand from voluntary surrender participants. 

Overall, the portfolio continues to perform within expectations, with no credit downgrades or covenant breaches. There was one review event during the year (with more detail in the Project Updates section). All projects within the portfolio are in the operating phase, except for the Fulham Solar Hybrid project and two sub-5 MW hybrid solar farms in the Prime Renewables portfolio. 

Infrastructure Debt Fund Performance (net of fees)

As at 31 December 2025

New investments

• Fulham Solar Hybrid Project – The project consists of a hybrid 107MW solar farm coupled with a 78MW two-hour battery energy storage system located in Fulham, Victoria, and is being developed by Octopus Australia, a specialist renewable energy developer and fund manager. It will be one of the first large DC-coupled hybrid battery/solar projects to join the National Electricity Market. The project has a unique revenue structure as it benefits from a Victorian Government 10-year VRET2 Support Agreement, which is effectively a fixed price-variable volume power purchase agreement. This will allow the project to sell a portion of solar generation (60% of the solar farm’s capacity) at a fixed price to give the project revenue certainty. The Fund’s senior debt facility will be a bridge facility, funding a portion of the construction costs alongside the equity contribution from funds managed by Octopus. 
  
  
• Australian National University (ANU) 2029 inflation-linked bond – ANU, established in 1946, is a prestigious public research institution located in Canberra. It consistently ranks among the top universities globally, reflecting its commitment to academic excellence and research impact. The university receives substantial government funding and holds a AA+ credit rating. From an investment perspective, the bond offers exposure to a high-quality, inflation-linked security at a compelling yield, while providing diversification into the education sector.
  
  
• Prime Renewables – This is a portfolio of wind and hybrid solar-battery projects in Victoria established by Prime Super, a $7.5 billion profit-to-member superannuation fund. The facility refinances five equity-funded operational wind assets and supports the acquisition of an additional five new hybrid solar-battery projects. The portfolio is diversified across generation technologies, revenue structures, and offtake counterparties, and is aligned with Victoria’s 95% renewable energy target by 2035. In addition to emissions-free electricity generation, the addition of battery storage creates opportunities to capture value from frequency control services and energy arbitrage markets. 
  
  
• National Renewable Network (NRN) – NRN provides behind-the-meter solar and battery solutions to residential customers. Residential batteries offer a cost-effective way of delivering renewable energy directly to customers. They eliminate the need for transmission while also giving energy retailers the flexibility to dispatch stored energy as needed. NRN aims to be an innovative platform that delivers energy cost savings to customers by bringing together solar installers, energy retailers, and investors. The NRN product lowers the barrier to entry requiring no upfront expenditure, enabling customers to see immediate savings on their energy bills. The purpose of the senior debt facility is to provide financing for operational residential systems within the NRN portfolio, which act as security against the facility. 
  
  
• Evie Networks – This company is the owner and operator of Australia’s largest electric vehicle DC fast-charging network. The company has a network of over 1,000 charging bays across more than 320 sites in all Australian states and territories. With fast-charging being a nascent sector, the loan provides further diversification and strong risk-adjusted returns.
  

Project updates

• The portfolio continues to perform within expectations, with no credit downgrades or breaches of covenants to report. A review event was triggered for one of the Fund’s solar loans in the September quarter. The review event related to a reduction in LGC prices. The covenant was designed to provide an early warning by linking to LGC price movements. The review event was resolved within the quarter through a partial debt paydown, a top-up of cash reserves, and a commitment by the sponsor to install a co-located battery – allowing the solar farm to diversify its exposure beyond daytime energy and LGC prices.  
  
  
• All projects within the portfolio are in the operating phase, except for the Fulham Solar Hybrid project and and two sub-5 MW hybrid solar farms in the Prime Renewables portfolio.  Over the year, the GGP portfolio also completed construction of the third and final 5MW hybrid solar farms in South Australia. 
  
  
• The portfolio saw several early loan repayments/ exits, including Boco Rock Wind (+7.1%), Neoen Capital Battery (+12.2%), Farm, and Octopus Dulacca Wind Farm (+9.7%). 
  
  
• The portfolio also refinanced debt facilities with existing borrowers, including Yarranlea Solar Farm and RELA. This allowed RELA in particular to support three additional concurrent solar farm leases across Queensland and New South Wales. 

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The Fulham Solar Hybrid Project, once fully developed, will be one of the first large DC-coupled hybrid battery/solar projects to join the National Electricity. 

Over the last 12 months to September 2025, assets within the portfolio generated over 1.5 million megawatt hours of clean energy and helped avoid over 850,000 tonnes of carbon emissions

Investments in the portfolio

The Fund consists of a portfolio of loans including:

• Bright Energy Investments Portfolio.  A portfolio of three renewable projects in Western Australian (Greenough River Solar Farm 40MW, Warradarge Wind Farm 180MW, and Albany Grasmere Wind Farm 35.4MW). 
  
  
• Yarranlea Solar Farm.  A 134 MW solar farm in Yarrenlea, Queensland (100km west of Brisbane). 
  
  
• Sentient Solar Asset Fund Portfolio.  A portfolio of three solar farms throughout Australia (Swan Hill Solar Farm 19.3 MW, Chinchilla Solar Farm 19.9MW and Brigalow Solar Farm 34.6MW). 
  
  
• RELA.  Portfolio of renewable concurrent leases in NSW and Queensland. 
  
  
• Dulacca Wind Farm.  A 181MWac wind farm in Drillham, Queensland (300km west of Brisbane). 
  
  
• Ark Energy NT Solar Portfolio.  A portfolio of five solar farms in the Northern Territory (Utene Solar Farm 4.1 MW, Yulara Solar Farm 1.8MW, TKLN Solar Farm - Lake Nash 272KWac, TKLN Solar Farm - Ti Tree 323KWac, TKLN Solar Farm – Kalkarindji 408KWac) 
  
  
• Royal Women's Hospital.  Australia’s first and largest specialist public hospital dedicated to improving the health and wellbeing of women and newborns, located in Parkville, Victoria. 
  
  
• Bouldercombe Battery. A 50MW/100MWh stand-alone battery energy storage system in Rockhampton, Queensland. 
  
  
• Darwin Convention Centre.  The Northern Territory’s largest conference and event facility, catering for up to 1,200 delegates. 
  
  
• New South Wales Schools 2. A portfolio of ten schools across New South Wales. The schools include seven primary schools, two high schools and one special needs school. 
  
  
• GTL Renewables. A portfolio of over 2,000 solar and battery power purchase agreement systems located across the east coast of Australia.  Under the arrangements, solar and battery equipment is provided to households for a fixed monthly fee over 10 years, with the option for customers to make their home batteries available for grid load balancing and stabilisation services.  
  
  
• GGP Solar Hybrid Portfolio.  A portfolio of three hybrid solar and battery projects with a combined solar capacity of 15MW and 15MWh of battery capacity.  
  
  
• Green Square Energy Trust Portfolio.  A portfolio of behind-the-meter solar PPAs with commercial and industrial users across Australia, as well as two solar farms, 3.6 MWac Chillamurra Solar Farm in Queensland and 5.0 MWac Cosgrove Solar Farm in Victoria. 
  
  
• Fulham Solar Hybrid.  A hybrid 107MW solar farm coupled with a 78MW two-hour battery energy storage system located in Fulham, Victoria.
  
  
• Prime Renewables. A portfolio of five operating wind projects and five hybrid solar-battery projects throughout Victoria. 
  
  
• National Renewable Network.  Portfolio of residential behind-the-meter solar and battery solutions throughout Australia. 
  
  
• Evie Networks. Australia’s largest electric vehicle DC fast-charging network with a network of over 1,000 charging bays across more than 320 sites throughout Australian. 

Portfolio holding weights