Coming quickly on the heels of the World Bank Dublin Euronext listed €1.5BN sustainable bond, it is great to see Ireland’s ESB develop a green bond framework.
Specifically earmarked to be used for climate and environmental projects, green bonds are typically asset-linked and backed by the issuer’s balance sheet and are also referred to as climate bonds.
In ESB’s case, ESB considers that green bonds are an effective tool to channel liquidity into assets which facilitate the transition to low carbon electricity generation and reduce greenhouse gas emissions and support their Brighter Future Strategy.
According to ESB, their green bond will primarily contribute to climate change mitigation through several project areas, including renewable energy; energy efficiency; clean transportation; and green buildings.
Adding further diversity to ESB’s investor base, ESB’s Green Bond Framework has been reviewed by Sustainalytics in terms of its alignment with relevant industry standards and its robustness and credibility as relates to the Green Bond Principles.
With the successful Irish State October 2018 €3BN green bond issuance, it is great to see an Irish semi-state now work towards issuing a green bond. Next up an Irish located large corporate.