10 October 2018
McCann FitzGerald advised NTMA on the Landmark Issuance of Ireland’s First Sovereign Green Bond
We advised the National Treasury Management Agency on the landmark issuance of Ireland’s first sovereign green bond - it will be used to finance Ireland’s transition to a low carbon, climate-resilient and environmentally sustainable economy.
Sovereign green bonds involve the issuance of debt securities to raise funds for projects with environmental or climate-related benefits. They provide investors with the financial features of a standard sovereign bond and specific green features regarding use of the proceeds and reporting requirements. We assisted the NTMA on the bond documentation and with the development of the Irish Sovereign Green Bond Framework - it outlined how bond proceeds would be allocated to ‘green projects’; project selection and evaluation; and investor reports on the allocation of funds to eligible projects and the environmental impact of those projects.
The Framework was designed to align to the Green Bond Principles 2018 published by the International Capital Markets Association. These are voluntary guidelines aimed at promoting integrity in the development of the green bond market. A globally recognised specialist was engaged to review the Framework and found it to be credible, impactful and aligned with the four core components of the Green Bond Principles.