Moscow's green bonds are acknowledged as compliant with green finance standards
Credit rating agency Expert RA has again recognized Moscow's green bonds as complying with the principles of green bonds and the criteria of a green financial instrument, said Maria Bagreeva, Deputy Mayor of Moscow, Head of the Department of Economic Policy and Development of the city.
“The rating agency draws up independent conclusions on the compliance of bond issues with the green finance principles annually during the whole period of their circulation. The conclusions prepared this year are based on the report on the use of funds from the placement of green bonds for 2023, which was approved by Moscow Mayor Sergei Sobyanin. Two issues of Moscow bonds were recognized as green: the 74th issue of 70 billion rubles, which was placed in 2021, and the first issue of Moscow bonds for the population of two billion rubles, which was realized in 2023. Both issues fully comply with the requirements set by the Government of the Russian Federation for green bonds with regard to the selection of projects for financing, use and accounting of funds and disclosure of information,” the Vice Mayor noted.
According to the Deputy Mayor, the receipt of independent opinions ensures that Moscow green bonds remain on the list of issues of financial instruments of sustainable development, which is maintained by the state corporation VEB.RF on behalf of the Russian Government. Also, the conclusion in respect of the 74th bond issue ensures the right to circulate in the Sustainable Development Sector of the Moscow Exchange.
Funds from the issue sales were allocated to the city's priority projects ensuring the reduction of pollutant and greenhouse gas emissions from motor vehicles. Through the sale of bonds for the public, 51 domestically produced electric buses were purchased in 2023. Out of 70 billion rubles received from the placement of the 74th issue, almost 60 billion rubles were spent on the construction and reconstruction of 21 stations and 48 kilometers of tracks of the Great Ring Line of the metro. Another 10.2 billion bought 400 domestically produced electric buses.
The purchase of the 74th seven-year issue is still possible on the secondary market, the issue is traded on the Moscow Exchange. The placement of green bonds for the public is completed in July 2023, these securities are not subject to resale until the end of their circulation in May 2025.
“Investors in green bonds can access full information about the spending of funds, the implementation of the city's green projects and the effects achieved. In total, the projects ensure the reduction of pollutant emissions from personal and public motor vehicles by almost one thousand tons annually, and the reduction of carbon dioxide emissions by 42 thousand tons. The achieved environmental effect corresponds to the planned values of the Moscow City Green Bond Concept,” Maria Bagreeva added.
