Guidance for Sovereign Green Bond Issuers
A sovereign green bond presents countries with an opportunity to demonstrate national leadership in the green financing agenda while giving exposure to a new investor base and solidifying a country’s commitment to complying with the Paris Climate Change Agreement. While green bonds allow sovereign issuers to appeal to a new class of investors, domestically or internationally, in addition to the usual costs associated with the preparation of a vanilla government bond, green bonds require upfront and ongoing resources that are not recoverable through bond proceeds. Many potential investors need to be educated on the benefits of a green bond, for themselves and the country. Studies have shown an increasing number of millennials are attracted to investments that will have a positive environmental impact, making it a wise choice for retail issuances and institutions whose customer base will increasingly include millennials. Clearly identifying the reasons for issuing will drive many decisions in the issuance process. If a country’s motivation to issue a green bond is prompted by a desire for cheaper financing compared to a vanilla issuance, then caution should be exercised. While it has been suggested they may have the potential to attract a pricing premiu
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
Washington, DC
2018
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| Subjects: | CLIMATE RESILIENCE, CLIMATE CHANGE, CLIMATE IMPACT, SOVEREIGN DEBT MANAGEMENT, BOND MARKET, GREEN BONDS, GREENHOUSE GAS EMISSIONS, CLIMATE CHANGE MITIGATION, CLIMATE CHANGE ADAPTATION, ENVIRONMENTAL SUSTAINABILITY, DEBT, MONITORING, |
| Online Access: | http://documents.worldbank.org/curated/en/813671525333162636/Guidance-for-sovereign-green-bond-issuers-with-lessons-from-Fijis-first-emerging-economysovereign-green-bond https://hdl.handle.net/10986/29783 |
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