Fiji’s first international green bond

London Stock Exchange Group welcomed Fiji’s first international green bond to start trading on the green bond segment of its International Securities Market (ISM) on 18 April 2018.

The dual-tranche green bond transaction includes a FJ$20 million ($10 million equivalent) tranche which will mature in 2022 at a yield of 4 percent, and FJ40 million ($20 million equivalent) tranche to mature in 2030 at a yield of 6.30 percent. Fiji’s landmark transaction represents the first sovereign green offering from an emerging economy.

Proceeds from Fiji’s green bond will be used to finance the sustainable management of natural resources, renewable energy, water and energy efficiency, as well as clean and resilient transport and waste water management.

 

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Frank Bainimarama, Prime Minister of Fiji and President of COP23: “We are very proud that Fiji’s green bond has been listed on London Stock Exchange, the premier market for green investments. Improving access to climate finance has long been a top priority of my government and I have also made it a key pillar of Fiji’s COP23 Presidency.

“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. We hope this bond serves as an example to other climate-vulnerable nations in finding innovative ways to raise finance for adapting to the impacts of climate change. We invite those in the finance sector to support and participate in this historic green bond launch and help fund new, resilient development in our country.”

Claire Perry, Minister for Energy and Clean Growth: “The transition to a clean, low carbon economy presents a multi-billion pound investment opportunity and we want UK businesses to take full advantage of it. We already have a world leading stock market, with more than 60 green bonds listed on London Stock Exchange, and we are determined to cement the UK’s position as a global hub for investment in clean growth.

“Today’s launch of Fiji’s first sovereign green bond on London Stock Exchange provides a ringing endorsement from the current Presidency of the Conference of Parties (COP) that London is the place to raise finance for climate resilience and mitigation in all sizes of market across the globe.”

Donald Brydon, Chairman, London Stock Exchange Group: “We are committed to developing innovative products and services in partnership with our customers to address the increased investor and issuer interest in green and sustainable finance.

“Fiji’s international listing represents the country’s commitment to address environmental issues and reinforces London Stock Exchange Group’s position as a strong partner for emerging economies and as a leading global listing venue for Green Finance”.