Moscow green bonds are recognized as meeting green finance standards

The credit rating agency Expert RA once again recognized Moscow’s green bonds as complying with the principles of green bonds and the criteria of a green financial instrument. This was announced by the Deputy Mayor of Moscow, Head of the Department of Economic Policy and City Development, Maria Bagreeva.

“The rating agency issues independent opinions on the compliance of bond issues with the principles of green finance annually throughout their entire circulation period. The conclusions prepared this year are based on a report on the use of funds from the placement of green bonds for 2023, which was approved by Moscow Mayor Sergei Sobyanin. Two Moscow bond issues are recognized as green: the 74th issue with a volume of 70 billion rubles, which was placed in 2021, and the first issue of Moscow bonds for the population with a volume of two billion rubles, which was sold in 2023. Both issues fully comply with the requirements set by the Government of the Russian Federation for green bonds regarding the selection of projects for financing, use and accounting of funds and disclosure of information,” emphasized Maria Bagreeva.

According to the Deputy Mayor, obtaining independent opinions ensures that Moscow’s green bonds remain in the list of issues of financial instruments for sustainable development, which is maintained by the state corporation VEB.RF on behalf of the Russian Government. Also, the conclusion regarding the 74th bond issue ensures the right to trade in the Sustainable Development Sector of the Moscow Exchange.

Funds from the sale of issues were directed to priority city projects that ensure the reduction of pollutant emissions and greenhouse gases from vehicles. Through the sale of bonds for the population in 2023, 51 domestically produced electric buses were purchased. Of the 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 on the Big Circle Metro Line. For another 10.2 billion, 400 domestically produced electric buses were purchased.

Purchasing 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 population was completed in July 2023; these securities are not subject to resale until the end of their circulation in May 2025.

“Investors in green bonds have access to complete information about the expenditure of funds, the implementation of green projects in the city and the effects achieved. In total, the projects provide a reduction in pollutant emissions from personal and public vehicles by almost a thousand tons annually, and a reduction in carbon dioxide emissions by 42 thousand tons. The achieved environmental effect corresponds to the planned values ​​of the Concept of Green Bonds of the City of Moscow,” added Maria Bagreeva.