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The Russian Environmental Operator recently announced that it has ambitions to issue a green bond, and Vnesheconombank has already done so. The most famous example of such bonds in our country is probably the issue of green bonds by Russian Railways for an electric transport project. The Moscow government also issued a green bond.
In my view, this is an instrument that needs to be developed further. The widespread use of green bonds is currently being hampered by high interest rates.
The rate for green projects must differ from the market rate by at least 2%, and if issuers have the ability to fund it, this instrument will become more popular. And right now, unfortunately, green bonds cannot be called an efficient way of financing.
Globally, however, this instrument has already proven itself and is growing quite strongly: in the first quarter of 2021, green bonds were one of the fastest-growing corporate finance segments. Moreover, the growth rate was doubling quarter-on-quarter. This means that it has a lot of potential in Russia as well.
Фото на обложке: ollo / iStock
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