Green Bond Principles

Based on initiatives of leading investment banks, including JP Morgan, Citigroup, Deutsche Bank or Crédit Agricole, principles for issuing a ‘green bond’ has been published a few days ago (see e.g. http://www.ceres.org/resources/reports/green-bond-principles-2014-voluntary-process-guidelines-for-issuing-green-bonds).

The intention is to set guidelines for corporations which intend to raise capital to implement a project with environmental benefit. Concrete processes are recommended for issuers regarding use of proceeds, project evaluation processes, reporting and management of proceeds from ‘green’ projects. The aim is to help market participants better understand the ‘green bond’ characteristics.

We expect that the use of guidelines in the CEE region will enhance transparency of the ‘green’ markets. In addition, a bond issued in line with the principles shall make renewable energy or energy efficiency operators distinguish themselves from conventional energy investors. Furthermore, we expect that such distinction will be able to attract even more investors on the ‘green’ market.