London Citi has issued and traded its first structured green bond, distributed by UBS Global Wealth Management. The proceeds will fund green projects in renewable energy, energy efficiency, sustainable transportation, water quality and conservation, and green buildings as defined in Citi’s Green Bond Framework.
The five-year bond provides exposure to three-month USD LIBOR with a floor, payable quarterly.
“This issuance is the next step in our commitment to supporting sustainable finance and growing investor appetite in the green bond market. The bond is a floored floating rate note, and is structured to combine the benefits of a tailored approach towards risk-return with sustainability criteria,” said Bhaavit Agrawal, Global Head of Rates Structured Notes at Citi
Citi was a co-founder of the ICMA Green Bond Principles in 2014, and since then has had a key role in the development of the market. In January 2019, Citi announced its inaugural Green Bond issuance, a €1 billion three-year fixed rate offering. Sustainalytics, a second-party provider and leader in ESG and corporate governance research and ratings, has reviewed Citi’s Green Bond Framework and has confirmed in their Second Party Opinion that it is aligned with Citi’s broader sustainability objectives as well as with the ICMA Green Bond Principles.
“As sustainability and ESG considerations continue to be prioritized by investors, Citi will continue to offer a range of innovative investment opportunities for the full range of our investor clients around the globe,” added Lorenzo Leccesi, Citi’s EMEA Head of Retail Cross Asset Solutions.
In 2015, Citi announced a $100 Billion Environmental Finance Goal to finance and facilitate $100 billion over 10 years to support environmental solutions and accelerate the global transition to a low-carbon economy. Citi also recently announced that it will source renewable power for 100 percent of its global energy needs by 2020. Both initiatives are part of Citi’s contribution to advancing the United Nations Sustainable Development Goals (SDGs). They are also key goals of Citi’s Sustainable Progress Strategy, which sets out Citi’s guiding principles, priorities and ambitions in environmental finance, environmental and social risk management, and the firm’s own operations and supply chain.
This announcement is not intended to, and does not, constitute, represent or form part of any offer, invitation or solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.
The distribution of this announcement in certain jurisdictions may be restricted by law or regulation and therefore any person who comes into possession of this announcement should inform themselves about, and comply with, such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities laws or regulations of any such relevant jurisdiction. This announcement is not for distribution, directly or indirectly, in or into the United States or to, or for the account or benefit of, U.S. Persons, as defined in Regulation S of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The bonds described in this announcement are not required to be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States.
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