BUDGET

Malta Budget 2020: what are green bonds?

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 theClimate 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?

When you select Grant Thornton as your service provider you are not only choosing a partner, but also a team of dedicated professionals focused on creating value for companies and institutions.

We work with clients like you to achieve their growth ambitions around the world. Equipped with sound knowledge of the financial markets and over 40 years’ experience, we have the ideal mix of skills, research and insights to help you make big decisions, with impeccable timing, to achieve your desired goals.

Speak to one of our experts now if you are interested in getting to know more about green bonds.