Citi issues first structured green bond
(26 March 2019 – Europe) Citi has successfully issued and traded the group’s first structured green bond with proceeds set to fund green projects in renewable energy, energy efficiency, sustainable transportation, water quality, conservation and green buildings as defined in Citi’s Green Bond Framework.
Distributed by UBS, the five-year bond provides exposure to three month USD LIBOR with a floor, payable quarterly. The bond is a floored floating rate note, and is structured to combine the benefits of a tailored approach towards risk-return with sustainability criteria.
“As sustainability and ESG considerations continue to be prioritized by investors, Citi will continue to offer a range of innovative investment opportunities for the full range of our investor clients around the globe” stated Lorenzo Leccesi, Citi’s EMEA Head of Retail Cross Asset Solutions. Citi was a co-founder of the International Capital Market Association (ICMA) Green Bond Principles in 2014, and has taken a key role in the development of the market.
East & Partners reported Citi’s inaugural Green Bond issuance in January 2019 – a €1 billion three-year fixed rate offering. In 2015, Citi announced a US$100 Billion Environmental Finance Goal to finance and facilitate $100 billion over 10 years to support environmental solutions and accelerate the global transition to a low-carbon economy. Citi also recently announced that it will source renewable power for 100 percent of its global energy needs by 2020. Both initiatives are part of the group’s contribution to advancing the United Nations Sustainable Development Goals (SDGs).
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