Cyprus to issue first Green Bond

Cyprus will issue its first-ever Green Bond, as the cabinet approved a proposal tabled by Finance Minister Constantinos Petrides. AThe Finance Minister has been authorised to launch proceedings for the issuance of the Republic’s first bond to raise money for green projects.

Green bonds are designated bonds intended to encourage sustainability and to support climate-related or other types of special environmental projects.

They finance projects aimed at energy efficiency, pollution

prevention, sustainable agriculture, fishery and forestry, protecting aquatic and terrestrial ecosystems, clean transportation, clean water, and sustainable water management.

They also promote the cultivation of environmentally friendly technologies and climate change mitigation.

Green bonds are attractive to investors as they offer tax incentives such as tax exemption and tax credits, making them a more attractive investment compared to a comparable taxable bond.