Tuesday, 25 June 2019

Questions (130, 131, 132)

Pearse Doherty

Question:

130. Deputy Pearse Doherty asked the Minister for Finance if all funds raised through the sale of green bonds will be spent directly on NDP-listed green spending totalling €23 billion in view of the fact that proceeds from green bond sales will be held in the central fund. [26094/19]

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Pearse Doherty

Question:

131. Deputy Pearse Doherty asked the Minister for Finance the projected timeline for the sale of green bonds; and the projected target for sales in order to finance green capital spending. [26095/19]

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Pearse Doherty

Question:

132. Deputy Pearse Doherty asked the Minister for Finance the amount raised through the sale of green bonds to date; and the value and maturity date of each in tabular form. [26096/19]

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Written answers (Question to Finance)

I propose to take Questions Nos. 130 to 132, inclusive, together.

Following the €3 billion syndicated transaction by the National Treasury Management Agency (NTMA) last October, there is one Irish Sovereign Green Bond (ISGB) outstanding. This bond, which was the first bond issued under the ISGB Framework published in September 2018, matures on 18 March 2031.

As regards the use of ISGB proceeds, the Framework provides that the intention is that an amount equal to the net proceeds of any ISGB will be allocated to finance new projects or to refinance existing projects, which qualify as Eligible Green Projects. As set out in the Framework, an annual Allocation Report will be made available which will include, amongst other things, the total amount allocated to Eligible Green Projects.

I am advised by the NTMA that the first ISGB Allocation Report will shortly be published. The Report was prepared by the ISGB Working Group, chaired by the Department of Finance, which includes representatives from the Department of Public Expenditure and Reform, the Department of Communications, Climate Action and Environment and the NTMA.

The Report will show that just under €2 billion – representing 65% – of the funds raised in the syndicated transaction last October was allocated to Eligible Green Projects outstanding as at end-2018. This leaves an amount of just over €1 billion yet to be allocated.

The NTMA expects to raise additional funds from the issue of ISGBs. In the first instance, this would be done by issuing more of the existing 2031 bond with timing dependent on market demand and investor feedback.

The National Development Plan 2018-2027 outlines an extensive set of projects and programmes, many of which meet the Eligible Green Project criteria set out in the Framework and therefore eligible for allocation. These include projects aimed at the following national strategic outcomes:

- Sustainable mobility

- Transition to a low-carbon and climate-resilient society

- Sustainable management of water and other environmental resources

Question No. 133 answered with Question No. 127.
Question No. 134 answered with Question No. 124.