The bonds have two maturity dates with a tenure of five years and 13 years. The shorter tenure bond has a coupon rate of 4.00% while the longer duration bond will have a coupon rate of 6.30%, which are highly attractive given the coupon rate for the French bonds was just 1.75%.
“With this bond, Fiji has demonstrated that green capital markets can be created in emerging economies, and that all countries, big and small, have an important role to play in facilitating climate solutions,” World Bank Group President Jim Yong Kim said.
This was the third sovereign green bond issued globally. Poland was the first to issue a sovereign green bond worth €750 million in December 2016. France followed suit and issued a €7 billion sovereign green bond in January 2017. Several other countries are expected to issue similar bonds; Climate Bonds Initiative lists Morocco, Nigeria, Sweden, and Kenya as potential issuers of such bonds.