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After Panda Bonds the Green Bonds may be approaching. The government continues to try to find different ways to finance itself in the markets and, according to the Finance Minister this Wednesday in Parliament, is now looking for a (not so) new way to get more money. Markets, Green Bonds . But what are these "green bonds"?
In the management of the public debt of a country, especially in a highly indebted country like Portugal, any economy is welcome. For now, according to Mário Centeno, the agency that manages the Portuguese public debt is in the process of finalizing the issuing process of Panda Bonds Chinese currency debt bonds issued by foreign countries on the Chinese market
Another option that is studied, according to the leader, are the Green Bonds or green bonds. But this type of loan that Portugal is considering asking investors to have somewhat different features of the bonds normally used.
For starters, in his goal. When a government issues a debt is valued for its ability to repay, but not for what it thinks use the money. Investors agree to lend the State concerned a rate of interest based on the risk that this loan will not be paid.
In the case of Green Bonds the objective is known from the outset. The investor knows the project for which you are lending money (whether it is the initial investment or the refinancing of the debt of this project), you know that it 's only the project. is an ecologically sustainable project or aimed at combating climate change.
Transparency is one of the big differences of this type of debt. Unlike other obligations, the investor knows exactly what he is investing in, he knows what the objectives of the project are and he has the opportunity to follow his progress.
For some investors who have limitations on the type of projects they can invest in, such as the Norwegian Sovereign Wealth Fund, this transparency is welcome and can make the difference when it comes to investing. ;invest.
The European Investment Bank was the first institution to issue such bonds for 11 years, and since then the market has grown significantly despite the fact that this market is still a fraction of the debt market. From 2016 to 2017, for example, debt issues increased by 78%, according to the Climate Bonds Initiative, reaching $ 155.5 billion.
The United States, China and France issued more than half of this debt last year, which is mainly used in renewable energy projects, energy efficiency, drinking water, sustainable land use and waste management, and biodiversity conservation.
There are already several ongoing projects funded by this type of bonds, which can also be issued by cities, as is the case for Gothenburg in Sweden, or by regions, for example the states Americans from Hawaii and Massachusetts. Among these projects are the Andasol solar power plants in Spain, or wind energy production sites in Germany, Estonia, the Netherlands and Kenya.
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