19 Oct 2017

Fiji issues green bond for climate mitigation

7:50 am on 19 October 2017

Fiji has issued a sovereign green bond to help it fund climate change projects.

The government plans to raise $US50 million through the bond to help mitigate and adapt to the effects of climate change.

Green bonds are fixed income, liquid financial instruments which provide investors an opportunity to support environmentally sound projects.

The World Bank, the International Finance Corporation, and the Australian government through a Capital Markets Development Project helped Fiji with the issuance.

Fiji will also use bond proceeds for projects to achieve 100 percent renewable energy and reduce its CO2 emissions in the energy sector by 30 percent by 2030.

The World Bank issued the first green bond in 2008 and Fiji has become the first developing country to do so.

The coupon rate is four percent over five years.