Rosatom announces a RUB 9 billion green bond issue

Photo: Novavind

Rosatom’s subsidiary Atomenergoprom is planning a new issue of green bonds. Ilya Rebrov, Deputy Director General for Economics and Finance at Rosatom State Corporation, spoke about the upcoming launch at the Atomexpo 2022 international forum.

“We are planning to make the next issue of green bonds for 9 billion roubles in the next few days. Everything is already ready, it will happen in the next few days,” he noted.

So, the company will collect bids from investors really soon — in late November or early December. The company is planning to place three-year bonds, series 001P-02. Coupon payments will be made semiannually. The benchmark yield will not exceed the three-year zero-coupon yield curve +120 bps. Gazprombank, BC Region, Moscow Credit Bank and Rosselkhozbank will act as the arrangers.

The money from the bond issue will be used to refinance the construction of a 375 MW wind farm as part of the Wind Power strategic programme.

This is already the second issue of green bonds for Rosatom. For example, in June 2021, Atomenergoprom placed its first issue of five-year green bonds worth 10 billion roubles at 7.5% per annum to maturity. At that time, demand for the issue exceeded supply by more than 7 times and amounted to more than 79 billion roubles. Like this time, the money was used to refinance the corporation’s wind energy projects.

The trend for green bonds is growing every year. In 2021, for example, bond issuance in support of sustainable development reached $859 billion globally, 1.5 times higher than in 2020. Of these, 80% of the funds, namely $481.8 billion, were green bonds that finance environmental projects. Social bonds accounted for $191.8 billion and bonds for other sustainable projects for $177.2 billion.

Cover photo: Novavind