Moody's assigned the highest grade to Lithuania's Green Bonds

Date

2018 06 28

Rating
1
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International credit rating agency Moody's Investors Service assigned the grade (GB1 Excellent) to the issue of Green Bonds issued by the Government of the Republic of Lithuania at the end of April.

‘We are among the leading countries that have issued green bonds - the third country in Europe and the seventh country in the world. We have implemented the process which the whole world is talking about and which is highly rated by the world-class experts. This is an extraordinary assessment of Lithuania and it shows the direction we need to move forward‘, Vilius Šapoka, the Finance Minister, says.

It is the first issue of government securities in the Baltic States, the funds derived from which are used to implement green projects, i. e. to modernize multi-apartments buildings and increase their energy efficiency.

You can find the Moody's Investors Service press release here

Assessment grade GB1 Excellent means that a green bond issuer has adopted an excellent approach to manage, administer, allocate proceeds to and report on environmental projects financed with proceeds derived from green bond offerings. Prospects for achieving stated environmental objectives are excellent.

GBAs are expressed using a scale ranging from 1 (Excellent) to 5 (Poor) that encapsulates Moody’s views, distilled from an evaluation of five broad factors that are weighted, as follows: Organization (15%), Use of Proceeds (40%), Disclosure on the Use of Proceeds (10%), Management of Proceeds (15%) and Ongoing Reporting and Disclosure (20%).