Romanian Ministry of Finance plans to launch green bonds on international markets in the next two years, to finance energy efficiency projects and reduce pollution, said Attila Gyorgy, Secretary of State in the Ministry of Public Finance.
“At the level of the Ministry of Finance, from the public debt management strategy, for 2021-2023, we took into account the issuance and use of green bonds as public debt instruments. The Ministry will coordinate the process of preparation and effective launch of green bonds on the international market and will coordinate the regular reporting process so as to ensure that the investment environment is informed about the allocated funds and the impact on the environment. We intend to set up and actively participate in the inter-ministerial working group that develops the general framework for green bonds at the sovereign level,” said the ministerial official, according to Agerpres.
The money raised will fund projects aimed at energy efficiency, pollution prevention, sustainable agriculture, clean transport, water management and more.
“Funds must be managed in a transparent manner, as expenditures are made. The allocation of funds may include expenditures from the previous budget year, but also from the current or even the next. We have an annual allocation report, until the amounts from the issuance of green bonds will be fully allocated,” Gyorgy said.
From the practice of other states, the implementation period of the general framework for green bonds will last about six months.
“Today’s situation shows us that foreign markets are in high demand for these instruments and there are investors who have special funds in this regard,” he said.
According to Gyorgy, yields are slightly lower than on standard bonds.
“We do not neglect the domestic market either, but we must take into account the interest and appetite of investors. A survey conducted by the National Bank of Romania among 13 banks representing 88% of the Romanian banking system reveals that green securities could be part of banks’ strategy on sustainability, but this direction is not yet clearly defined,” added the representative of the Ministry of Finance.
