Cyprus to issue its first Green Bond

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Cyprus will issue its first-ever Green Bond, as the cabinet approved a proposal tabled by Finance Minister Constantinos Petrides.

According to a cabinet decision, the 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.

The Finance Ministry noted: “The choice to promote this financial tool indicates the state’s commitment to resolving environmental and social issues.

“It is also an integral part of the effort to transition to a green economy and achieve the state’s environmental goals within the framework of EU policies”.