Costa Rica's bank issues USD-500m green bond

Wind farm in Costa Rica. Author: Christian Haugen. Licence: Creative Commons, Attribution 2.0 Generic.

April 28 (SeeNews) - Banco Nacional de Costa Rica has issued a USD-500-million (EUR 441m) green bond to finance wind, solar, hydro and wastewater projects.

The bond has a coupon of 5.875% and matures on April 25, 2021. Banco Nacional will rely on Costa Rican environmental protection regulations to determine eligible projects.

The Climate Bonds Initiative (CBI) noted in a blog post that it is not yet clear if the hydro projects to be funded are run-of-river or dam-based, information crucial in determining climate impact. Banco Nacional have committed to online reporting on the use of proceeds, including allocation and environmental impact estimates.

This is the fourth green bond issuance in Latin America, according to CBI.

Costa Rica is one of the global leaders in terms of renewable energy use. In the first quarter of 2016 it sourced 97.14% of its power from renewables. Hydro's share alone was 65.62%.

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