IIB acts as an investor in the debut placement of the Hungarian “green” sovereign bonds
International Investment Bank invested in the debut placement of green bonds arranged by the Hungarian Government Debt Management Agency Pte. Ltd - ÁKK.
The issue with a total volume of 1.5 billion euros was the first green sovereign bonds placement in the history of the country. It faced a strong demand from a wide range of both Hungarian and international investors showing five times oversubscription. The funds were raised within the “Sovereign Green Bonds Framework of Hungary” and will be directed to finance and refinance environmental projects.
“IIB’s participation in this placement as an investor is logical and natural, as it fully complies with the Bank’s Mission and “The Policy on Environmental and Social Sustainability” approved by the Board of Directors in December 2019, which both provision for ESG (Environmental, Social and Governance) investments priority,” – noted Anton Gudkov, the Head of the ESG Investment Section of the IIB Treasury.
Today, IIB’s “green treasury portfolio” accounts for over 50% of the total volume and includes flagship inaugural placements of green bonds of leading government agencies, international financial institutions and corporates. In its lending and investment activities the Bank also pays particular attention to supporting projects that contribute to environmental protection, the introduction of innovative “clean” technologies, energy saving and energy efficiency.
“The high demand for the debut issue of green bonds in Hungary - IIB’s shareholder with the second-largest share in the paid-in capital, - is a clear evidence of confidence and support of the international financial community towards the country's effective sustainable development policy”, - commented Imre Laszlóczki, Deputy Chairperson of IIB representing Hungary in the Management Board, Head of the Bank’s ESG Steering Committee, “We are pleased to have participated in the successful implementation of this historic bond placement for Hungary, providing aid for a whole specter of priority tasks aimed at restoring the economy after the pandemic.”