The North American Development Bank (NADB) has entered the green bond market for the first time with a CHF125 million ($126.4 million) bond, managed by Credit Suisse.
The bond will mature in July 2026 and pays a coupon of 0.30%, although NADB will receive three-month $ Libor plus 42.20 basis points, as a result of a cross-currency interest rate swap it has arranged.
NADB said its environmental mandate “aligns very well with the core components of the Green Bond Principles”. Net proceeds will be used to fund projects in renewable energy, sustainable water and wastewater management, energy efficiency, and pollution prevention and control.
Sustainalytics has given a second party opinion on the bank’s green bond framework which concluded that is “credible and impactful” and aligns with the Green Bond Principles.
NADB is capitalised and governed equally by the US and Mexico. It aims to help develop and finance environmental infrastructure projects with public and private sector sponsors in the border region between the two countries. As of 31 December, it had $1.29 billion in outstanding loans to projects in the region. It has a credit rating of Aa1 from Moody’s and AA from Fitch.