Cyprus considers issuing green bond in 2023

Cyprus is considering the issuance of a green bond in in 2023, an official of the Finance Ministry’s Public Dent Management Office (PDMO) has told CNA.

“This is something we are considering, but there is no certain timeframe,” the official said, noting that this is a tentative decision for adding green bonds in Cyprus’ financing tools.

Noting that the issuance of green bonds requires time and preparation, the same official said that “the issuance is expected in 2023 at the soonest and will be in the region of €500 million.”

Issuing green bonds requires a certification by an external advisor who will review the projects to be financed, while review mechanisms should be in place.

So far green bonds have been issued under the Green Bonds Principles established by the International Capital Market Association (ICMA) while the European Commission has launched a consultation process over the setting up European standards governing the issuance of European green bonds (EU GBs).

Green bonds have gained significant momentum in the las years with experts estimating that green bonds issuances will reach one trillion US dollars by 2023.