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Green Bonds: A Guide To Funding Development Projects

July 1, 2019
A Pangea SI Expert
    What This Guide Covers:

  • How would you go about structuring a Green Bond for a developer with existing operating assets as well as development projects / projects in construction?
  • What are the funding capacities for these green bonds?
  • What are the main barriers to entry?
  • Local or Overseas?
  • Last revised: March 20, 2020

 

“When it comes to any form of development or sustainable finance, firms and individuals tend to ask the wrong questions first.”
Speak to the Sustainable Finance Specialist who wrote this guide Expert Bio Expand

 

Structuring a Green Bond for a developer with existing operating assets as well as development projects / projects in construction

The term “green bond” refers to debt securities whose proceeds are used to finance investment projects with an environmental benefit.

Identification Of Eligible Green Projects
As defined in the EU Taxonomy, COM 353 (2018)

 
The Green Bond Framework is a comprehensive document for investors and other market participants that describes the following points:

Identification Of Eligible Green Projects

 

Source: Report on EU Green Bond Standard, EU TEG (June, 2019)

Funding capacities of Green Bonds

Debt Ratio of Green Bonds

Traditional debt methods would fund at 70% debt. Can a green bond reach this level?

Source: Green bonds – Mobilising the debt capital markets for a low-carbon transition (OECD, 2015).

The Main Barriers to Green Bond market development


Source: Report on EU Green Bond Standard, EU TEG (June, 2019)

Local or Overseas?



Source: Amundi Asset Management & International Finance Corporation (2018)

 

Source: Amundi Asset Management & International Finance Corporation (2018)

This guide was provided by a sustainable finance Expert with nearly 20 years of consulting experience.

Contact Mr Callis on 020 7551 0782 or by email mike.callis@pangea-si.com to connect with this Expert.

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