- €3 billion in 12 year green bond raised by the NTMA
- Low yield 1.399% highlights benefit of the Government policy to balance the books
The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe, T.D. today (Wednesday) welcomed the successful twelve year green bond sale by the NTMA saying it provides a new funding channel for green projects, the aim of which are to mitigate against climate change. This follows on from the approval by Government of the Irish Sovereign Green Bond (ISGB) Framework.
Welcoming the result of the sale of the Green bond, Minister Donohoe stated: ‘The success of today’s inaugural Green bond sale by the NTMA, will broaden the funding base for Ireland’s debt and offers a new funding channel for climate change action, which is a priority for Government. I congratulate the NTMA for their work in ensuring the success of the launch. The Government is committed to climate action as demonstrated by the fact that one in every five euros identified in Project Ireland 2040 will go towards climate action. This move by the NTMA is another positive step on the road to securing additional funding to address the green agenda’.
Minister for Financial Services and Insurance, Michael D’Arcy TD, added,: ‘Irish Sovereign Green Bonds will help to fund the green projects set out in the National Development Plan which contains €23 billion in direct Exchequer funding for eligible green projects over the next ten years. Green and Sustainable finance is a key priority under the IFS2020 Action plan for 2018 and with this bond, Ireland becomes one of the few countries in Europe that has issued green bonds’.
ENDS
Notes for Editors
In September, the National Treasury Management Agency (NTMA) announced plans to issue Ireland’s first Green Bond in the coming months, subject to market conditions.
The announcement followed the publication by the NTMA of the Irish Sovereign Green Bond (ISGB) Framework, which was approved by Government.
The ISGB Framework sets out how proceeds from ISGB issuance will be allocated against eligible green projects, which primarily address climate change mitigation and adaptation, clean water and wastewater treatment, counter natural resources depletion and loss of biodiversity, and reduce air pollution.
It also aligns green bond funding with State spending on green projects identified in the National Development Plan. The ISGB Framework also provides for the creation of a reporting mechanism for ISGBs.
Green Bonds remain a relatively new feature of the sovereign debt market. In the EU only France, Belgium and Poland have issued Green Bonds to date.