Ireland is planning to issue its first ever green bond in the coming months, the National Treasury Management Agency said on Friday. The agency is planning to meet with potential investors on a roadshow in the coming weeks, Market Watch reported.
Proceeds of any deal will be used to fund eligible green projects that address climate change, clean water and wastewater treatment, resource depletion, loss of biodiversity and air pollution. “The issuance of Green Bonds enables Ireland to access a new and growing pool of capital,” said NTMA director of funding and debt management. JP Morgan and HSBC France are structuring advisers to the NTMA.
The move is the latest step taken by the agency to increase the range of debt instruments it offers to investors and it comes after publication by the agency of a new Government-approved framework that outlines how proceeds will be allocated against eligible green projects, Irish Times adds.
Pioneered by the World Bank a decade ago and subsequently adopted by the corporate world, Poland became the first country in 2016 to issue green bonds to finance climate and environmental investments.
A number of countries, including France, Indonesia and Belgium, have followed suit, as governments globally seek to live up to the Paris climate agreement, and investor demand grows for socially responsible investment opportunities.
Green bond issuance ballooned to a record $161 billion (€138.8 billion) last year, up four-fold from 2015, according to Climate Bonds Initiative. It estimates that green bond sales will raise as much as $300 billion globally this year.
NTMA said its new framework had been independently reviewed and backed by Sustainalytics, a global firm that specializes in environment, social and government research and ratings.