Core Elements of Green Bond Issuance

Note: All of these steps must be completed in order to issue a green bond, however they do not necessarily have to happen sequentially and can often be done in parallel. Each bond issuance is unique.

✔ Determine Whether a Green Bond is the Right Financing Tool for You

  • Do you issue bonds as a financing tool?
  • Do you have existing and/or new assets and/or programs identified that are green bond eligible?
  • Do you have a planning or finance system that can 1) identify eligible projects for financing or refinancing, and 2) track financial flows in relation to the use of proceeds?If you answered yes to these questions then green bond financing is a viable financing tool.

✔ Determine Which Projects to Include in the Green Bond

  • Identify and select assets
  • Gather evidence to support eligibility of assets

✔ Decide the Level of Outside Verification

  • Self-Labeling
  • External Reviews
    • Second Party Opinion
    • Verification Against the Green Bond Principles
    • Certification Under the Climate Bonds Standard
    • Government/National/Regional Guidance

✔ If Seeking Green Bond Verification

  • Identify and select a green bond verifier
    • See approved verifiers for the Climate Bonds Initiative Certification program here
  • Receive and review the draft Verifier’s report
    • See an example verification report here
  • Receive final version of the Verifier’s report
  • Schedule post-issuance verification with Verifier

✔ Prepare Required Green Bond Documentation

  • Create a Green Bond Framework document
    • See Apple’s Green Bond Framework here
    • See Brookfield Asset Management’s Green Bond Framework here
    • See Vodafone’s Green Bond Framework here
    • See CitiBanks Green Bond Framework here
    • See the City of Vancouver British Columbia in Canada Green Bond Framework here
    • See Nigeria’s Sovereign Green Bond Framework here
  • Provide documents for Certification to third party certifier (if using)
  • Set up information flows for update reporting on green bond use-of-proceeds over time
  • Prepare/finalize bond documents
  • Get legal sign off

✔ Consider Third-Party Certification

  • If seeking certification, select certification program
    • Climate Bonds Initiative
    • Other certification programs (e.g. Cicero’s ‘Shades of Green’)
  • Receive Certification Letter and Certificate from selected Certifier

✔ Identify a Bond Underwriter

  • Select a bond underwriter
  • Prepare information for Term Sheet and other materials
  • Work with the underwriter team on book build and allocation to investors
  • Launch the deal with the Underwriter Team

✔ Secure Investors

  • Identify investors
  • Schedule and do road show and meetings with investors
  • Execute documents and transact
  • Close books and inform investors

✔ Communicate

  • Prepare and release media and communications material

✔ Congratulations, you’ve issued a green bond!