2018年-世界发展银行全球_Guidance_for_Sovereign_Green_Bond_Issuers___With_Lessons_from_Fijis_First_Emerging_Economy_Sovereign_Green_Bond_28页_2mb

Summary of Guidance for Sovereign Green Bond Issuers With Lessons from Fiji's First Emerging Economy Sovereign Green Bond

Core Content

Sovereign green bonds are a tool for governments to raise capital for climate-related and environmentally sustainable projects, while also demonstrating national leadership in the green financing agenda and attracting new investors. This guide provides practical considerations for governments planning to issue green bonds, based on the experience of Fiji, which became the first emerging economy and the third nation globally to issue a sovereign green bond in 2017.

Main Points and Key Information

1. Purpose of Green Bonds

• Definition: Green bonds are fixed-income instruments used to fund projects that contribute to climate mitigation, adaptation, and environmental sustainability.
• Sovereign Green Bonds: Similar to vanilla government bonds, but with a specific 'green' purpose.
• Pricing: Sovereign green bonds are typically priced on or near the yield curve of vanilla bonds, as investors focus on sovereign risk rather than project returns.
• Objectives: Can include moral leadership, climate resilience, attracting new investors, and supporting the Paris Climate Change Agreement.

2. Key Considerations Before Issuance

• Clear Issuance Purpose: The motivation for issuing a green bond should be well-defined. While some believe green bonds may attract a pricing premium ('greenium'), this is not yet empirically proven.
• Eligible Projects: A pipeline of eligible expenditures must be established. Projects may include renewable energy, energy efficiency, pollution prevention, climate adaptation, and sustainable water management.
• Governance Structure: A steering committee with senior government officials and external experts is essential for coordinating the process, defining eligible projects, and ensuring transparency and accountability.
• Debt Profile: The sovereign's debt position will influence the bond's structure, including tenor, currency, and frequency of issuance.
• Costs and Resources: Green bonds require upfront and ongoing costs, including policy framework development, external reviews, and monitoring/reporting systems, which are not recoverable through bond proceeds.

3. Preparation and Issuance

• Domestic vs. International: Each has different transaction costs, disclosure requirements, and currency considerations. International issuances require more regulatory compliance.
• Policy Framework: Must align with internationally recognized principles like the Green Bond Principles (GBP), which provide voluntary guidelines for market use.
• Listing on Stock Exchanges: Can enhance pricing transparency and secondary trading, though trading volumes are usually low.
• Marketing and Communication: Must be well-planned to educate investors on the benefits of green bonds, especially for retail and ESG-focused investors.

4. Post-Issuance Considerations

• Monitoring and Reporting: A robust system must be established to track the use of proceeds and the impact of funded projects.
• Transparency: Critical for market credibility and future investor confidence.
• Impact Reporting: Regular reports should be published to demonstrate the effectiveness of the bond in achieving environmental goals.

Fiji's Experience

Overview

• First Emerging Economy Sovereign Green Bond: Issued in 2017, raising 100 million Fijian dollars (US$50 million) to support climate adaptation and resilience.
• Purpose: To fund projects that help the country adapt to climate change, especially after the devastation caused by Tropical Cyclone Winston in 2016.

Key Actions Taken by Fiji

• Steering Committee: Established with support from the World Bank Group, led by the Governor of the Reserve Bank of Fiji.
• Eligible Projects: Identified through collaboration with the World Bank Group, aligning with the Green Bond Principles.
• Issuance Structure: Split into a five-year tranche (US$20 million) and a 13-year tranche (US$80 million), catering to different investor profiles.
• Technical Support: Received from the IFC-led World Bank Group team, funded by the Australian Government through the Fiji Partnership.
• Investor Response: Domestic banks significantly oversubscribed the bond, showing strong support for green financing.

Conclusion

The issuance of a sovereign green bond is a strategic move that can enhance a country's reputation, attract new investors, and support climate resilience. However, it requires careful planning, a clear purpose, and a robust governance structure. Fiji's experience provides a valuable roadmap for other nations, emphasizing the importance of transparency, external review, and long-term program development.