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April 27, 2021 12:42 pm

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Photo by M. Denisov.

The funds received from the placement of green bonds will finance some Moscow projects.

The Moscow government approved the decision to issue the 74th issue of bonds of the Moscow city bonded (domestic) loan. The corresponding decree was signed at a meeting of the Presidium of the Moscow Government Sergei Sobyanin

The 74th issue will be issued in accordance with the green bond concept approved by the Moscow Government on April 20, 2021.

The total volume of the issue will be 70 billion rubles – 70 million bonds with a par value of one thousand rubles each. The bond circulation period is from May 27, 2021 (inclusive) to May 17, 2028 (inclusive), which is 2548 days. The maturity date of the bonds is May 18, 2028.

The placement can be carried out during the entire circulation period of the bonds. For the first placement, a collection of targeted bids for the purchase of bonds is carried out on predetermined conditions.

The coupon rate on bonds is constant for all coupon periods. Its size is set before the start of the placement of bonds on the basis of the offers submitted by the participants.

The bonds have 14 coupon periods of 182 days each. The following dates of coupon payment on bonds are known:

– for the first coupon period – November 25, 2021;

– for the second coupon period – May 26, 2022;

– for the third coupon period – November 24, 2022;

– for the fourth coupon period – May 25, 2023;

– for the fifth coupon period – November 23, 2023;

– for the sixth coupon period – May 23, 2024;

– for the seventh coupon period – November 21, 2024;

– for the eighth coupon period – May 22, 2025;

– for the ninth coupon period – November 20, 2025;

– for the 10th coupon period – May 21, 2026;

– for the 11th coupon period – November 19, 2026;

– for the 12th coupon period – May 20, 2027;

– for the 13th coupon period – November 18, 2027;

– for the 14th coupon period – May 18, 2028.

According to the concept of Moscow green bonds, the issue will comply with the Green Bond Principles 2018 of the International Capital Market Association (ICMA), as well as methodological recommendations for the development of investment activities in the field of green finance in the Russian Federation, developed by “VEB.RF”. In the near future, this compliance should be confirmed by an independent organization – the rating agency “Expert RA”.

In subsequent years, Moscow will publish reports on green bonds annually.

The equivalent of the funds received from the placement of green bonds, the Moscow Government plans to use to finance and refinance urban environmental projects to reduce emissions of pollutants and greenhouse gas from vehicles. These funds will finance the replacement of the Moscow bus fleet with electric buses.

Emissions of pollutants from one Euro-4 bus are 290.5 kilograms per year, and the emissions of Euro-5 environmental class – 219 kilograms per year. Indirect emissions of pollutants from recharging one electric bus are only about 30 kilograms per year. Carbon dioxide emissions from a diesel bus are estimated at an average of 64.9 tons per year, while emissions from an electric bus are 4.4 tons per year.

Thus, replacing one diesel bus with an electric bus provides:

– reduction of pollutant emissions by 260.5 kilograms per year for the Euro-4 class and by 189 kilograms per year for the Euro-5 class;

– reduction of carbon dioxide emissions by an average of 60.5 tons per year.

Today, the city park has 600 electric buses, and plans to purchase 1600 electric buses in the coming years.

Another project, which will be financed from the funds received from the placement of green bonds, is the construction of the Big Circle Line (BCL) of the metro.

It is one of the largest metro projects in the world. The total length of the BCL, taking into account the sections already put into operation, will be 70 kilometers with 31 stations and three electric depots.

At the moment, the overall construction readiness of the ring is 74 percent, including 95 percent of the tunnels completed.

According to the concept of green bonds, the funds raised are planned to be used to finance the construction of 18 stations and 43.8 kilometers of lines, as well as the reconstruction of three stations and four kilometers of BCL lines.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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