Green Bonds Issue

Who uses green bond issues?

Bonds, including sustainable bonds, are one form of debt financing for companies. Sustainable bonds, also known as green bonds, differ from conventional bonds in that they are used exclusively to finance environmentally sustainable projects. Green investment vehicles can be attractive to certain types of investors (banks, funds) and can raise the ESG rating of issuers.

When is a bond green?

Definition of a green bond

A bond can be considered sustainable if it is targeted at an investment that promotes environmentally sustainable economic activities under the EU Taxonomy Regulation.

Regulation (EU) 2023/2631 on European Green Bonds (EuGB Regulation) introduced three types of bonds that support sustainable economic activities:

European Green Bond (EuGB)

at least 85 % of the proceeds must be allocated to economic activities that meet the taxonomic requirements
prior to issuance, the issuer shall prepare a fact sheet on the EuGB disclosing the environmental strategy and the revenue allocation plan
the issue must be issued in the form of a European Green Bond prospectus
the issuer shall produce allocation reports during the issuance and, once the EuGB proceeds have been fully allocated, the issuer shall produce a report on the environmental impact of the use of the proceeds
the EuGB issue is subject to an external assessment by a registered assessor
the external assessor pre and post-emission assessment of the allocation reports

Bonds offered as environmentally sustainable / Sustainability-linked bonds

no minimum proportion of proceeds allocated to environmentally sustainable economic activities
voluntary disclosure of pre- and post-emission information
however, pre- and post-emission information must comply with the requirements of the EuGB
regulation the issuer does not have to undergo an external assessment by a specialised body

What will we do for you?

we will assess the "greenness" and recommend a suitable type of sustainable bond
recommend the appropriate form of bond issue (public sub-limit, private, prospectus)
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 the issue in accordance with the current EuGB Regulation and the Bond Act
we will prepare the bond subscription agreement (investor agreement)
we will draft the wording of the bonds
we will propose the wording of certificated bonds
in the case of book-entry bonds, we will arrange for the book-entry of the issue in the CSD
in the case of the certificated form, we will create a list of bondholders for you in accordance with the Bond Act
we will inform you about the possible ways of offering and subscription of bonds to end investors

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 the development groups Moravská stavební - INVEST, Fidurock, the wine group Volařík and the space satellite manufacturer TRL SPACE Invest. We have prepared more than 130 bond issues for our clients on a turnkey basis. 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. We'll help you. Contact us.