Cyprus is expected to join the club of countries that issue green bonds, with the first issuance of “green loans” before the end of the year, Cyprus’ Finance Minister Constantinos Petrides said on Wednesday.
“The decision to proceed with the issuance of a green bond by the end of the year has been approved by the Cabinet” said Petrides, addressing the annual general meeting of the Association of Cyprus Banks.
Petrides noted that this issuance “will have an incredibly positive response from the rating agencies and from the markets because it will mark the readiness of Cyprus to enter this new era.”
The issuance of green bonds requires the evaluation of eligible projects by an external consultant who will certify that the projects meet the specifications, while the establishment of appropriate monitoring mechanisms is also needed.
Green bonds have gained a momentum during the last few years. It is estimated that green bonds worth around $1 trillion will be issued by 2023.
Source: Cyprus News Agency