Fiji has become the first emerging economy and first Commonwealth country to launch a sovereign green bond, with trading beginning this morning on the London Stock Exchange (LSE), Business Green reported.
The Fijian government has launched a dual-tranche green bond transaction, which includes a FJ$20m ($10m) tranche which will mature in 2022 at a yield of four per cent, and a FJ$40m ($20m) tranche to mature in 2030 at a yield of 6.3 per cent.
The cash will be used to finance renewable energy, clean water and energy efficiency projects in the country, as well low-carbon transport and greener waste management systems.
Fiji currently holds the Presidency for the UN climate negotiations, and Prime Minister Frank Bainimarama has made action to boost climate financing a key tenet of his leadership.
Opening trading at the LSE this morning, Bainimarama called on other climate-vulnerable countries to follow Fiji’s lead.
“With this bond, we have shown it is possible for emerging markets to develop financing mechanisms that are innovative, credible and transparent, and which align with global standards,” Bainimarama said.
“We hope this bond serves as an example to other climate-vulnerable nations in finding innovative ways to raise finance for adapting to the impacts of climate change. We invite those in the finance sector to support and participate in this historic green bond launch and help fund new, resilient development in our country.” he pointed out.
Read more at Business Green