The North American Development Bank (NADB) has published the impact results of its first green bond, issued in 2018. The bond’s total net proceeds of US$126.4 million were used to finance or refinance six renewable energy projects in the U.S.-Mexico border region.
All bond proceeds were allocated as of December 31, 2018, which included the refinancing of US$53.06 million for a project funded within 24 months prior to the bond issuance, as well as US$73.36 million in new loans disbursed to five wind and solar projects.
According to the report, these six projects have a total installed capacity of 1,118 MW and an estimated 3,312 gigawatt-hours (GWh) of annual renewable energy generation, equivalent to the annual electricity use of about 438,200 households. Upon completion, these projects are expected to help avoid more than 1.45 million metric tons a year of greenhouse gas emissions, equivalent to taking 309,440 cars off the road per year.
“The issuance of our first Green Bond in 2018 represents a logical step in our evolution and our desire to be at the forefront of innovation,” stated Calixto Mateos-Hanel, NADB Acting Managing Director. “This report is presented a year after the bond’s issuance and after full allocation of its proceeds, in adherence to the Green Bond Principles as well as to our own policies regarding transparency in the approval and financing of projects.”
On July 24, 2018, NADB issued a CHF 125 million (US$126.4 million) green bond managed by Credit Suisse. The bond will mature in July 2026 and pay a coupon rate of 0.3000%.
To see the full 2018 Green Bond Impact Report, click here.