NTMA confirms plans to issue its first green bonds

Agency has just received Government approval for a new green bonds framework

Green bond issuance ballooned to a record $161 billion (€138.8 billion) last year.

Green bond issuance ballooned to a record $161 billion (€138.8 billion) last year.

 

The National Treasury Management Agency (NTMA) has confirmed it is to issue green bonds for the first time in the coming months.

The move is the latest step taken by the agency to increase the range of debt instruments it offers to investors and it comes after publication by the agency of a new Government-approved framework that outlines how proceeds will be allocated against eligible green projects.

Pioneered by the World Bank a decade ago and subsequently adopted by the corporate world, Poland became the first country in 2016 to issue green bonds to finance climate and environmental investments.

A number of countries, including France, Indonesia and Belgium, have followed suit, as governments globally seek to live up to the Paris climate agreement, and investor demand grows for socially responsible investment opportunities.

Green bond issuance ballooned to a record $161 billion (€138.8 billion) last year, up four-fold from 2015, according to Climate Bonds Initiative. It estimates that green bond sales will raise as much as $300 billion globally this year.

NTMA said its new framework had been independently reviewed and backed by Sustainalytics, a global firm that specialises in environment, social and government research and ratings.

The agency said it intended to engage with potential investors on a targeted roadshow over the coming weeks. JP Morgan and HSBC France are acting as advisers to NTMA.