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