LONDON, March 7 (IFR) - Credit Suisse plans to issue its first Green bond alongside an initiative by the Swiss bank to step up its activity in finance linked to environmental or climate-related benefits.
The bank said details of its inaugural Green bond issue and a framework for the paper will be released at a series of presentations in Europe next week.
Proceeds will initially be allocated to projects contributing towards sustainable energy and climate action.
The bank said the framework sets out how proceeds will be used and managed, based on the industry-leading Green Bond Principles and aligned to the UN Sustainable Development Goals.
In September, Credit Suisse said it was setting up an Impact Advisory and Finance department, with a mandate to facilitate green finance projects and initiatives for its wealth management, institutional and corporate clients. It appointed Marisa Drew, former co-head of its investment banking and capital markets business in Europe, to head the department.
Green bonds aim to have environmental or climate-related benefits that can increase the flow of funds to environmentally beneficial projects, which can in turn reduce the projects’ costs.
Issuance of Green bonds is rising, and set to climb from a record US$119bn last year to about US$130bn this year, according to a forecast this week by Italian bank UniCredit.
UniCredit estimated half of last year's issuance came from Europe, while Asia accounted for 27%, led by deals from China, and North America made up 13%. (Reporting by Steve Slater Editing by Philip Wright)