Green Bonds Issuance

and Support Offering

Deloitte Central Europe
 Who can issue Deloitte's support throughout
Green Bonds? the issuance process

Defining Green Bonds Any organization with bonding

authority may issue Green Bonds.
The process of issuing Green Bonds is very context-specific and based on the specific
objectives your entity should meet if you decide to carry out such an issuance. Our extensive
Whether you are a private company, expertise allows us to support you throughout the process, from the initial exploration and
financial institution, or a municipal market research phase, all the way to post-issuance impact measurement and reporting.
government, funding environmental projects Throughout the process, we ensure that issuers follow the Green Bonds Principles.
Green Bonds function the same way as any other bonds,
through Green Bonds may be of interest Collectively they relate to 1. use of proceeds, 2. process for project evaluation
in that they are a fixed income issuance. However, their proceeds to you. and selection, 3. management of proceeds, 4. reporting. Following the GBP is key
are allocated solely to financing new or existing projects with in ensuring transparent disclosure and effective management.
According to the Climate Bond Initiative, as
climate and environment-related objectives. Set standards for
of 2018, 145 entities in Europe have issued Strong cross-department teams enable one-stop approach to cover most client needs
Green Bonds issuance make them a tool that directly promotes Green Bonds. These include: and provide innovative solutions.
the development solutions, as issuers are obligated to use Private companies
the proceeds from the bond issuance for project deemed Non-financial corporations, particularly Consulting Financial Advisory
energy and utility companies, finance Experienced and agile consulting teams, Financial advisory experts with experience
environmentally beneficial. As with normal bonds, while the
specific environmental projects through using advanced data analytics and economic in financial documentation preparation..
proceeds fund specific projects, the Green Bond's return Green Bonds issuance. Such issuances tools. Capable of evaluating Green Bonds
is usually backed by the credit risk of the issuer as a whole. allow investors to know their investments impacts and assessing market potential
Legal
are going to green solutions, as companies
Energy, competition, corporate law, and
issuing Green Bonds obligate themselves
capital market experts, with extensive legal
to ring-fence the proceeds to specific, Assurance
experience in bond issuance support.
Proceeds from Green Bonds can be previously-outlined projects. Statutory and financial audit, assurance,
utilized to fund various environmental and audit advisory. Including extensive
projects, including those related to: Financial institutions experience in granting second opinion Tax
Smart city
solutions Commercial banks, investment banks, and third party assurance for Green Bonds. National and international taxation laws,
Bioenergy
and development banks can all issue Green grants, transfers pricing.
technology
development Bonds a way to diversify their offering
Energy and allow for greater reach to potential
Low carbon efficiency investors. Such issuances signal the
Waste buildings companies’ commitment to sustainable EXTENSIVE PORTFOLIO OF CLIENTS
& pollution development.
control Circular
Climate resilient economy
infrastructure Municipalities and national Energy sector Investment Banks
governments
Sustainable Renewable Government entities can issue Green Bonds
agriculture & alternative
Water conservation & forestry as a means to finance specific local projects Government agencies Development Banks
energy
and infrastructure or meet selected environmental targets. For
development municipalities, Green Bonds are a sure way
Urban to engage local stakeholders into financing Commercial Banks Multi-national companies
transportation
sustainable solutions, while for national
governments, sovereign Green Bonds aid
Municipalities International business
in carrying out sustainable policy agendas associations
and stimulate the flow of private capital
investments.

Why should you Green Bonds Market 03. Forthcoming EU legislation on sustainable Drivers for Green Bonds 04. The ability to finance green projects 08. Low volatility and steady return,
finance ensures more investors will shift without the sacrifice of liquidity or credit as with any fixed asset obligation.
consider issuing Potential issuance
towards green investments. risk, as would be the case with direct
Green Bonds? 01. The Global Green Bonds market was 04. Issuers are visibly becoming more 01. Growing demand for sustainable
standalone investment. 09. Pricing advantage potential,
created by order book momentum
set to be worth $250 billion by the end of diverse. More varied organizations from financial instruments. 05. Brand enhancement and marketing increasing due to a growing number
2018, a 60% growth from 2017. (Bloomberg a wider set of countries are issuing Green aspects. of green investors.
estimates) 02. Growing demand for responsible
Bonds.
business practices 06. Economic & convenient financing 10. Increased visibility through
02. Bloomberg projections estimate that the 05. Past issuances of Green Bonds have model. inclusion in various Green Bonds
global Green Bonds issuance will exceed 03. Expansion of investor pool, through
been widely over-subscribed, with demand Indexes.
$400 billion by 2020. attracting new, environmentally-oriented 07. Consolidation of investment
greatly exceeding supply.
investors. and environmental objectives.

02 03
Phase 0
Market Exploration
A proper diagnosis of the
market potential and the
company’s needs should be
carried out prior to making
the decision to issue a Green
Bonds. Our economic analytics
team can provide you with the
necessary analysis and market
sounding that will ensure your
decision is based on facts and
through research.
Green Bonds market analysis
A macro-level analysis at the
national, European, or Global
level can be the first step in
helping you contextualize your
role in the market. We offer
comprehensive capital and debt
market analysis that can identify
growth prospects.
Gap analysis
Identification of areas in which
Green Bonds issuance can
benefit your firm, improve
current economic performance,
and expand your offering.
Impact projections
Based on the profile of eligible
projects, we can measure
the direct and indirect
environmental, social,
and economic impact your
Green Bonds issuance can have.
Market sounding
Gauging the interest of potential
investors is key in identifying
the feasibility of a Green Bonds
issuance. We can support
you in testing the waters by
conducting market research
and communicating with various
stakeholders.
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and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.
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© 2019. For information, contact Deloitte
Phase 1 Phase 2 Phase 3
Pre-issuance Issuance Post issuance
Once you decide that issuing Our consulting, legal, and Regular management of the
a Green Bonds is feasible, assurance teams have the holistic Green Bonds, once issued, is
proper preparation will be key in experience necessary to provide required for the successful
guaranteeing that the issuance you with all the necessary support realization of the bond’s
is effective. Deloitte Central for issuing a Green Bonds. objectives. We can support you
Europe has the experience in:
and expertise to ensure your Preparation of the Investor
Applying for Green Bonds
issuance is prepared adequately Presentation
credit rating
to your expectations.
Legal and financial
Green project selection Certification of use of proceeds
documentation support
We are here to help you select
the projects that will best meet Periodic reporting of financial
Tax-related support
your financing objectives. Our and environmental effects
unique screening tool allows Third Party Assurance
us to model the potential Impact measurement –
environmental and economic including aggregated direct
Second Party Opinion
impact the profile of projects. and indirect impact effects of
projects financed through the
Green Bonds Framework Green Bonds.
We have experience in
drafting effective Green Bonds
Frameworks. We will work with
you to
1) define the use of proceeds,
2) establish a selection and
evaluation process for eligible
projects, and
3) outline management of
proceeds, reporting standards,
and assurance review
procedures.
Legal analysis
Aside from preparation of
required documentation,
our legal experts also have
experience in choosing the
best financing model, including
establishing the issuer’s roles,
type of bond to be issued, and
the desired relationship with
financial institutions.
04