New York, Nov. 28 – The Canton of Geneva priced CHF 620 million of green bonds in two tranches, according to an announcement from the government.
The canton sold CHF 420 million of 10-year bonds with a 0.25% coupon and CHF 200 million of 14-year bonds with a 0.5% coupon.
“The offering of green bonds gives Geneva a new way of demonstrating its commitment in favor of sustainable development,” said Serge Dal Busco, state counsellor in charge of the department of finance, in the news release.
Investors included new participants with a green orientation such as insurance companies, pension funds and asset managers and existing investors in Geneva’s debt, including some who obtained an increase in their investment limit so that they could participate.
Proceeds will be used to finance highly energy efficient buildings for health and medical research uses. The funds will be used to refinance buildings already in service or about to be opened for use and to fund construction over the next two years.
Among the facilities included are stages five and six of the university medical center and stage 3.3 of the university hospital’s Gustave Juilliard and maternity work.
Geneva said that the issue is the first time that a Swiss public body has used this kind of financing.
The Canton of Geneva is the local government for the region that includes the city of Geneva and the surrounding area.
| Issuer: | Canton of Geneva
|
| Issue: | Green bonds
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| Amount: | CHF 620 million
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| Announcement date: | Nov. 24
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| Rating: | S&P: AA-
|
|
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| 10-year notes
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| Amount: | CHF 420 million
|
| Maturity: | 10 years
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| Coupon: | 0.25%
|
|
|
| 14-year notes
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| Amount: | CHF 200 million
|
| Maturity: | 14 years
|
| Coupon: | 0.5%
|
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