‘Successful’ government launch of WSC green bonds shows investors’ eagerness for green initiatives

The successful launch of the green bonds by the Water Services Corporation and their listing on the Malta Stock Exchange has shown investors’ eagerness for green initiatives, Minister for the Environment, Energy and Enterprise Miriam Dalli said.

Addressing a business breakfast organised by the Water Services Corporation, Dalli said the issuance of the €25 million bond, subscribed within hours of issuance, showed the potential of this model to help finance more green initiatives.

“There is a real opportunity to build on the success of Green Bonds to support a wider range of environmental projects that can drive our country’s digital and environmental transformation. I firmly believe in the strength of collaboration, and I see this as just the beginning of further collaboration to steer more resources towards sustainable investments,” Dalli said.

The bond, issued by ClearFlowPlus p.l.c. and valued at €25 million, boasts a 4.25% interest rate and is set to mature in 2033. The proceeds from the WSC’s green bond will be used for financing a range of eco-conscious initiatives, including the reverse osmosis plant at Ħondoq ir-Rummien, the establishment of solar farms, improvements in wastewater treatment aeration, reduction of non-revenue water, enhancements in billing efficiencies and upgrades to water network infrastructure.

Water Services Corporation CEO Karl Cilia expressed his gratitude to both the investors and partners.

“The listing of our first green bond exemplifies our dedication to advancing sustainable practices in Malta. It’s a testament to investors’ trust in our vision for a greener future,” he said.

The Corporation’s Chief Financial Officer Matthew Costa spoke about the financial intricacies of the bond.

“It’s noteworthy that a significant 88% of the green bonds were secured by small investors, showcasing the broad-based support and belief in our sustainable initiatives,” Costa said.

Prime Minister Robert Abela delivered a video message at the event, while he was participating in a Leaders’ Summit in Spain.

Abela spoke about the strategic importance of such sustainable financial initiatives. He said that Malta’s trajectory towards sustainable growth is anchored in high-quality investments that foster economic opportunities and pave the way for meaningful careers, enhancing the overall quality of life for the Maltese community.

The event was also supported by Grant Thornton. Partner Head of Advisory George Vella provided insights into the advisory role and the future prospects of green bonds in Malta, emphasizing the potential for growth and innovation in this domain.