Fiji’s Prime Minister & President of COP23 Frank Bainimarama announces green bond issuance just weeks away from the start of Bonn Climate Conference
Year of Sovereign Green Bonds gets a south sea boost!
The sovereign green bond market has just reached a new milestone with the announcement of Fiji’s FDJ100m (USD50m) issuance.
Fiji comes in a very respectable third in the race for sovereign green bond issuance, won by Poland with a EUR750m issuance in late 2016, and soon followed by France’s impressive EUR7bn.
According to the World Bank announcement:
“At the request of Fiji’s Reserve Bank, the World Bank and the International Finance Corporation (IFC), a member of the World Bank Group focusing on private sector, provided technical assistance to assist the government in issuing a sovereign green bond. This collaboration took place under a broader, three-year Capital Markets Development Project supported by the Australian Government.”
The green bond is aligned with the Green Bond Principles and the use of proceeds will support the construction of climate resilient infrastructure, as well as the country’s NDC targets of achieving 100% renewable energy and abating 30% emissions by 2030.
Congratulations!
PM Frank Bainimarama, who will be chairing COP23 in November, stated Fiji wants to set an example by proving green bond markets can be created in climate-vulnerable developing countries.
“By issuing the first emerging country green bond, we are also sending a clear signal to other nations that we can be creative and innovative in mobilizing funds.”
He intends on making access to climate finance a key focus in this year’s COP.
Fiji now holds the title of first Pacific nation sovereign issuer, first emerging economy issuer and the first from the Southern Hemisphere.
Global leadership can come from any nation, big or small.
Who’s next? More nations need to step up.
Nigeria has its sovereign green bond in the pipeline, and is set to become the first African sovereign issuer.
With COP23 now in sight and President Macron’s Climate Summit due in December, can we expect to see more sovereign green bond issuance announcements before the end of 2017...
We think there should be.
It'll be tougher to meet the $1trillion by 2020 green finance milestone climate leaders are calling for without countries now following Fiji's footsteps.
Fiji’s green bond is also an enormous step in encouraging emerging economies to search for innovative ways to finance the fight against climate change and ensure a sustainable future.
It should give food for thought amongst other, more developed nations, to be actively considering demonstration issuance.
There’s plenty of time & two huge climate events left this year to provide a perfect backdrop.
Bula!
‘Till next time,
Climate Bonds
P.S: Surprised at the Fiji announcement? You haven’t been following the Climate Bonds Twitter account.
Back in June, then September and just a few days ago we gave you the hint….
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