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Development of Green Bond Framework (GBF) for Green Bond Issuance
Our client is the largest producer of Renewable Energy in South Africa and had the intention to issue its first Green Bond to refinance its existing debt for various wind farms which they own and operate.
The Challenge
Our client is a pioneer in the field of renewable energy. They also take their impact on Climate Change very seriously and wanted to further bolster their Green Credentials. One way of achieving this is to re-finance the debt on their wind farms by issuing a Green Bond.
In order to do this, the company was required to develop a Green Bond Framework (GBF) which complies with the requirements of the Green Bond Principles (GBP).
Our Solution
Our team guided the client through the process which was necessary to ensure that they complied with the four core components of the GBP. This included writing of the GBF as well as advising the client as to what policies and documents they would need to put in place, to support the main document; the GBF.
Furthermore, since it was made clear that the client was looking for a Second Party Opinion (SPO) on the GBF, we advised the client as to what evidence the auditor would want to see and supported them with the audit.
The Outcome
- The client was provided with a GBF which was fully compliant with the GBP. This was purposely structured in a manner which allowed further assets to be included without the need to re-write the GBF.
- With guidance, the client also developed a suite of documents which were referred to within the GBF.
- Successful assurance, by an independent, audit firm, was obtained which confirmed that the GBF complied with the GBP.
