Who uses green bond issues?
Bonds, and green bonds, are one way of financing commercial companies over the long-term. When a bond meets the requirements of being “green”, it may be named as such. Green bonds differ from normal bonds in terms of their purpose and that they are used exclusively to finance environmentally-sustainable projects.
Although the valid Czech legislation does not currently provide any specific benefits for issuers or investors in relation to green bonds (for example tax allowances), green bond issuers are able to attract new investors that are interested in environmentally-friendly and sustainable projects. The issuer is able to raise its profile by focusing on such projects and acting in line with the principles of responsible financing (ESG financing).
When is a bond green?
(definition of a green bond)
A bond can be considered green when it focuses on an investment which conforms to environmental objectives and complies with what are known as Green Bonds Standards. Under EU taxonomy regulation, the following are deemed to be environmentally-sustainable objectives:
- climate change mitigation
- climate change adaptation
- sustainable use and protection of water and marine resources
- transition to a circular economy, preventing the production of waste and waste recycling
- pollution prevention and control
- protection and restoration of biodiversity and ecosystems
What will we do for you?
- we will recommend an appropriate form of bond issue (public, below-the-threshold, private, with prospectus, we will assess the “greenness” of your project)
- we will assign a project manager to you, who will guide you through the whole process and will regularly update you
- we will advise you on setting the specific parameters of the issue according to our practical experiences with clients
- we will arrange LEI for the issuer and ISIN for the bonds at the Central Securities Depository (CDCP)
- we will compile the terms and conditions of issue in accordance with the Act on Bonds in force at that time
- we will prepare a contract on the subscription of bonds (a contract with investors)
- we will propose the wording of certificated bonds
- in case of dematerialised bonds, we will ensure the dematerialisation of the issue at CDCP
- in case of certificated bonds, we will compile a list of bond owners for you according to the Act on Bonds
- we will inform you of the possible ways of offering bonds to end investors and subscribing
- will provide you with a precise guide (structured procedure) for working with bonds, meaning that each and every employee at the company will be able to work with them
What will we need from you to do all this?
Information about your plans, completion of a short form and approval of the parameters of the bond issue (denomination, interest, maturity, etc.). We can deal with everything in person, by e-mail, or by telephone.
How long will it take?
The preparation of a turnkey green bond issue without the obligation to compile a prospectus will not take longer than 14 days.
Whom have we helped to issue bonds?
We have prepared bond issues for developer MSI Capital (Moravská stavební – INVEST group), the Volařík winery, and many others. We have, in fact, prepared more than 130 turnkey bond issues for our clients. You will find other references here.
How much will it cost?
The price depends on the specific requirements of the issue. You will receive a detailed written offer from us following a telephone or personal consultation.
Are you interested in Green Bonds?
