THE GREEN BOND CHECKLIST
Core Elements of Green Bond Issuance
Note: All of these steps must be completed in order to issue a green bond, however they do not necessarily have to happen sequentially and can often be done in parallel. Each bond issuance is unique.
✔ Determine Whether a Green Bond is the Right Financing Tool for You
Do you issue bonds as a financing tool?
Do you have existing and/or new assets and/or programs identified that are green bond eligible?
Do you have a planning or finance system that can 1) identify eligible projects for financing or refinancing, and 2) track financial flows in relation to the use of proceeds?
If you answered yes to these questions then green bond financing is a viable financing tool.
✔ Determine Which Projects to Include in the Green Bond
Identify and select assets
Gather evidence to support eligibility of assets
✔ If Seeking Green Bond Verification
Identify and select a green bond verifier
See approved verifiers for the Climate Bonds Initiative Certification program here
Receive and review the draft Verifier’s report
See an example verification report here
Receive final version of the Verifier’s report
Schedule post-issuance verification with Verifier
✔ Prepare Required Green Bond Documentation
Create a Green Bond Framework document
See Apple’s Green Bond Framework here
See Brookfield Asset Management’s Green Bond Framework here
See Vodafone’s Green Bond Framework here
See CitiBanks Green Bond Framework here
See the City of Vancouver British Columbia in Canada Green Bond Framework here
See Nigeria’s Sovereign Green Bond Framework here
Provide documents for Certification to third party certifier (if using)
Set up information flows for update reporting on green bond use-of-proceeds over time
Prepare/finalize bond documents
Get legal sign off
✔ Consider Third-Party Certification
If seeking certification, select certification program
Climate Bonds Initiative
Other certification programs (e.g. Cicero’s ‘Shades of Green’)
Receive Certification Letter and Certificate from selected Certifier
✔ Identify a Bond Underwriter
Select a bond underwriter
See the Underwriters League Table from Climate Bonds Initiative to see a list of underwriters
Prepare information for Term Sheet and other materials
Work with the underwriter team on book build and allocation to investors
Launch the deal with the Underwriter Team
✔ Secure Investors
Schedule and do road show and meetings with investors
Execute documents and transact
Close books and inform investors
Prepare and release media and communications material
✔ Congratulations, you’ve issued a green bond!