Clifford Chance advised Citigroup on world's first emission reduction-linked bond issued by IBRD
Clifford Chance advised Citigroup on world's first emission reduction-linked bond issued by IBRD
It would help in providing safe drinking water for schools and institutions throughout Vietnam
International law firm Clifford Chance has advised Citigroup Global Markets Limited as an arranger of the first bond linked to the generation of voluntary carbon units (VCUs), issued by the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.
The interest on the bond is linked to and contingent on the issuance of VCUs by a project in Vietnam. It is generated by the dissemination of zero greenhouse gas emitting safe drinking water purifiers to provide safe drinking water for schools and institutions throughout Vietnam. In addition, it would minimize the use of non-renewable biomass or fossil fuel utilized for boiling water as a means of purification.
Deborah Zandstra, the partner who led the deal at Clifford Chance said, "We are delighted to advise on this first-of-a-kind transaction where the coming together of finance, environmental, and social objectives have enabled the financing of clean drinking water to schoolchildren in Vietnam and the reduction of emissions whilst generating carbon credits for coupon payments.
Elaborating further, she added, "The transaction illustrates the potential for further cooperation between the private sector and the multilateral to finance the establishment of carbon reductions projects in a form that can in turn generate monetizable carbon credits."
The successful execution of the deal adds to the law firm's established track record of advising clients on cutting-edge ESG transactions.
Apart from Deborah Zandstra, the Clifford Chance team comprised London lawyers James Kelton and John Thomson, and trainee Alex Szlezinger. They were assisted by lawyers across the firm's network, including Jon Zonis, Avrohom Gelber, and Jemma Dick.
