| Corporate Green Bonds |
| Source: |
London Stock Exchange |
| Domain: |
Finance/Fundraising |
| Prerequisites: |
Adherence to Green Bond Principles
EU Taxonomy
Internal tracking
Monitoring regime
|
| Potential Impact: |
Substantial |
| Application to Armenia |
The Government of Armenia and the regulator (Central Bank of Armenia) might consider prioritization of Green Bonds as potential instrument for attracting project finance into private sector entities (other than banks issuing Green Bonds) in certain sectors/sub-sectors. As an incentive, application of co-financing for transaction advisory services could be considered. |
For issuers, green, social and sustainability bonds are a way to tap into fixed income investors that wish to achieve green financing impact through the bonds that they invest in. There is a pool of approximately US$100 trillion of patient private capital managed by global institutional fixed-income investors. And there is a desire by many to integrate climate and sustainable investment approaches into their portfolios.
The International Capital Markets Association (ICMA) has a well-defined framework for issuing green bonds, known as the Green Bond Principles (GBP). ICMA also oversees the Social Bond Principles and Sustainability Bond Guidelines, which provide for their respective areas. Introduced in 2014, the GBP are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the green bond market by clarifying the approach for issuance of a green bond.
