Certification

The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds, loans & other debt instruments. Rigorous scientific criteria ensure that it is consistent with the goals of the Paris Climate Agreement to limit warming to under 2 degrees. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.

 

Central Arkansas Water

 

Central Arkansas Water is responsible for supplying the drinking water for 500,000 residents in greater Little Rock, Arkansas, United States. The bond is the first Certification to finance the acquisition and protection of forests specifically to secure clean drinking water. 35% of the bond proceeds will be used to refinance the acquisition of approximately 1,820 ha (4,500 acres) of forested land, building on the 4637 ha (11,458 acres) of conserved forested buffer surrounding the drinking water reservoirs and its tributaries. The remainder of the proceeds will be spent on improving and developing "gray" infrastructure, such as pumps.

This acquisition will result in forty-five percent (45%) of the Lake Maumelle watershed being conserved as forest land, which provides critical filtration services for clean drinking water.  

The World Resources Institute WRI and Encourage Capital partnered with CAW to prepare the issuance of the green bond.

 

 

DATE OF ISSUE

TYPE OF INSTRUMENT

SIZE

TENOR

COUNTRY OF ISSUE

CLIMATE BONDS SECTOR CRITERIA

VERIFIER'S REPORT

ANNUAL REPORT FURTHER INFORMATION
November 2020 US Municipality USD 31.825m up to 22 years United States

Water

Pre Issuance Verification

 

EMMA Statement

blog

Environmental Finance article