October 19 (Renewables Now) - Fiji has raised FJD 100 million (USD 49m/EUR 41m) through the issue of a sovereign green bond, thus becoming the first emerging market to do so, the World Bank announced on Tuesday.
The proceeds will be used to support climate change mitigation and adaptation, including projects that will help the government in its efforts to achieve 100% renewable energy and cut its carbon dioxide (CO2) emissions in the energy sector by 30% by 2030.
“With this bond, Fiji has demonstrated that green capital markets can be created in emerging economies, and that all countries, big and small, have an important role to play in facilitating climate solutions,” World Bank Group President Jim Yong Kim said.
The bond matures on November 1, 2022 and November 1, 2030, with coupons of 4.00% and 6.30%, respectively.
The World Bank said that its member, the International Finance Corporation (IFC), has provided technical assistance to Fiji’s government with regard to the issue as part of a broader, three-year Capital Markets Development Project supported by the Australian government.
(FJD 1.0 = USD 0.489/EUR 0.414)