Fiji’s 1st green bond starts trading in London

Trading of Fiji’s first international sovereign green bond has started on the London stock exchange (LSE) last Wednesday, according to an official announcement.

The island country raised FJD 100 million (USD 48.9m/EUR 40.2m) in October 2017 from the sovereign green bond issue, thus becoming the first emerging economy to launch such a transaction.

According to the website of the COP23 climate change conference, trading on the green bond segment of LSE’s International Securities Market (ISM) has commenced for a FJD-20-million bond maturing in 2022 and a FJD-40-million bond due in 2030. The bonds bear coupons of 4.00% and 6.30%, respectively.

As previously announced, proceeds from the inaugural green bond will be used to support climate change mitigation and adaptation, including projects that will help the government of Fiji in its efforts to achieve 100% renewable energy and cut its carbon dioxide (CO2) emissions in the energy sector by 30% by 2030. Projects for sustainable management of natural resources and waste water management will also benefit from the financing.

“With this bond, we have shown it is possible for emerging markets to develop financing mechanisms that are innovative, credible and transparent, and which align with global standards,” said Frank Bainimarama, Prime Minister of Fiji and president of COP23.

(FJD 1.0 = USD 0.489/EUR 0.402)

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