During the presentation of the 2020 budget, Malta’s Finance Minister Edward Scicluna has announced that the Malta Stock Exchange will open up for green bonds. Green bonds are a way to raise money for projects which bear interest in environment improvement or carry an eco-friendly aspect. Indicatively, such projects may entail the introduction of sustainable renewable energies, clean transportation, low carbon, and good energy efficiency buildings or sustainable waste management.
How are green bonds issued?
The first green bond was issued in 2007 by the European Investment Bank and the issuance thereof has since then increased.
The issuer must abide to the rules laid out by the Climate Bonds Initiative, an international organisation working to mobilize funds for climate change solutions. These rules detail the procedures to be followed in the management of the proceeds, as well as the mandatory information to be included in the yearly reports.
Why should Maltese companies consider green bonds?
Green bonds have a concrete contribution to sustainability, enhancing the issuer’s corporate image, whilst attracting investors valuing the importance of purpose driven eco-friendly projects, thus generating an indisputable win-win scenario.
How can Grant Thornton help you?
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Speak to one of our experts now if you are interested in getting to know more about green bonds.