Prime Minister (PM) Imran Khan formally launched Pakistan’s first Green Eurobond here today (Monday).
Also known as ‘Indus Bonds’, have been issued by the Water and Power Development Authority (WAPDA) to raise $500 million from the international markets at 7.5 percent.
This issuance has completed a landmark deal for Pakistan’s power sector and is also Pakistan’s first green bond issuance.
The launch of the bond attracted a positive response from international investors, with offers amounting to six times more than the amount needed to be raised ($3 billion).
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The WAPDA has essentially issued the Green Eurobond to raise the financing of the Diamar Bhasha and Mohmand Dams.
In his address at the launching ceremony, the PM lauded the WAPDA for the successful launch and said that the government plans to construct ten dams in ten years to meet the water needs of the country and to produce clean energy.
He also commended the progress made in the construction of both the water reservoirs during the last two and a half years and explained that they will produce 10,000 MW of clean and environment-friendly electricity in the country.
The PM reiterated that Pakistan is among the countries that are the most affected countries by climate change and that the government is working on a tree plantation drive under the Ten Billion Tree Tsunami program to deal with the challenge. He said that the plantation target of one billion trees has been successfully achieved and that 15 special national parks were also being established to protect and preserve the natural environment.
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The Minister for Finance, Shaukat Tarin, also spoke on the occasion and said that green bonds have been becoming popular globally as countries re-orient their policies to join the race to zero omission.
He said, “Only in the first quarter of this year, the world issued $107 billion of such bonds, with most of them in the Asia Pacific,” and added, “And during this year, it is estimated that globally there will be $450- 500 billion dollars of such bonds much higher than the last year”.
He went on to say that Pakistan’s efforts to meet environmental challenges are being recognized globally. He added the Diamer Bhasha and Mohmand Dams projects are critical to the country’s future energy, water, and food security needs.
He said, “The bond issuances of sub sovereigns are done in the private sector all over the world, they offer capital market solutions to the funding needs. However, for Pakistan, this is the first and should encourage further such transactions in the future as the economy embarks on a growth path”.
The minister also said that the issuance of green bonds and the utilization of their proceeds towards environmentally-friendly projects is also essential for Pakistan to meet its promised contributions committed at the UN.
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