SUVA, Nov. 1 (Xinhua) -- With Fiji being the first country in the Pacific and the first emerging market to issue a sovereign green bond, the participation of businesses in this initiative had been tremendous, a Fijian government official said on Wednesday.
Fiji's Economy Minister Aiyaz Sayed-Khaiyum told a press conference that the week-long tender had aroused overwhelming interest, which resulted in the floated amount of 40 million Fijian dollars (about 19.2 million U.S. dollars) being significantly oversubscribed.
A total of 87.7 million Fijian dollars (about 42 million U.S. dollars) were received in tenders for the two tenures of five year and 13-year bonds respectively, he said.
The minister said Fiji would use all proceeds for environmental projects to achieve a 100-percent renewable energy and reduce its carbon footprints by 30 percent by 2030.
Fiji announced on Oct. 18 that it would issue a sovereign green bond in November, raising 100 million Fijian dollars (about 48 million U.S. dollars) to support climate change mitigation and adaption.
Fiji is also the third country in the world to issue a sovereign green bond, after France and Poland.
Like all Pacific Island states, Fiji is also highly vulnerable to the impact of climate change, with some of its 300 low-lying islands affected by rising sea levels.
Nearly 20 percent of the region's 10 million people could be displaced due to climate change by 2050.
Green bonds are fixed income, liquid financial instruments that are used to raise funds dedicated to climate mitigation, adaptation, and other environment-friendly projects.
The market for green bonds has grown rapidly, particularly since the Paris Agreement was adopted in 2015. It is expected to reach 134.9 billion U.S. dollars in 2017, a 36-percent increase from 2016.
