Guidance for Sovereign Green Bond Issuers: With Lessons from Fiji's First Emerging Economy Sovereign Green Bond

A sovereign green bond presents countries with an opportunity to demonstrate national leadership in the green financing agenda while giving exposure to a new investor base and solidifying a country's commitment to complying with the Paris Climate Change Agreement. While green bonds allow sovere...

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Körperschaft: International Finance Corporation (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C The World Bank 1905
Schriftenreihe:World Bank E-Library Archive
Online-Zugang:Volltext
Zusammenfassung:A sovereign green bond presents countries with an opportunity to demonstrate national leadership in the green financing agenda while giving exposure to a new investor base and solidifying a country's commitment to complying with the Paris Climate Change Agreement. While green bonds allow sovereign issuers to appeal to a new class of investors, domestically or internationally, in addition to the usual costs associated with the preparation of a vanilla government bond, green bonds require upfront and ongoing resources that are not recoverable through bond proceeds. Many potential investors need to be educated on the benefits of a green bond, for themselves and the country. Studies have shown an increasing number of millennials are attracted to investments that will have a positive environmental impact, making it a wise choice for retail issuances and institutions whose customer base will increasingly include millennials. Clearly identifying the reasons for issuing will drive many decisions in the issuance process. If a country's motivation to issue a green bond is prompted by a desire for cheaper financing compared to a vanilla issuance, then caution should be exercised. While it has been suggested they may have the potential to attract a pricing premiu
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DOI:10.1596/29783