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Climate Finance RBF: Applications To Tender For Green Bonds Are Now Open

Climate Finance RBF: Applications To Tender For Green Bonds Are Now Open
Reserve Bank of Fiji Governor Ariff Ali
October 26
12:31 2017

The tenders for the Green Bond opened yesterday with an awareness programme for potential investors.

Approximately 50 investors turned up for a briefing session hosted by the  Reserve Bank of Fiji.

RBF has always been the registrar of Government securities and will handle all the logistical requirements relating to the issue of the Green Bond.

RBF governor Ariff Ali said based on the feedback from investors, it is likely that the first issue totalling $40 million out of the total issue of $100 million will be over-subscribed.

Investors present included all the commercial banks, insurance companies, Fiji National Provident Fund, Unit Trust and a notable number of individuals.

Mr Ali stated that two maturities will be offered for the first issue on November 1, 2017.

They will be a five-year bond which will give investors a return of four per cent per annum and the 13 year bond that will give investors a return of 6.30 per cent.

The interest or coupon will be paid six-monthly and paid on May 1st and November 1st until the Bond matures.

On the maturity date which is November 1st 2022 for the five year bond and November 1st 2030 for the 13 year bond, investors will get their principal or amount invested back with the last interest payment.

Investors can opt for either competitive tender or non-competitive tender.  Non-competitive tender is more suitable for retail investors. The minimum investment is $1,000 and the maximum is $100,000.

The competitive tender is for sophisticated institutional investors and there is no ceiling on the amount they can invest.

Mr Ali also highlighted Fiji will be the third sovereign and the first in the region to issue green bonds.   

He also explained that they have satisfied the requirements of Green Bond principles and this has been verified by an external party, Sustainalytics Inc.

He elaborated that the funds from the bond issue will go for specific projects identified and Government will report periodically on how and where the funds have been issued.

“To make the bonds more liquid or attractive, the RBF also stand ready to buy the bond in the secondary market if investors need to cash in their investment,” he said.

Feedback:  monica.aguilar@fijisun.com.fj

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