We are a regular issuer of Green Bonds, which in our case are called 'Water Bonds'. We started issuing them in 2014, and now they are an indispensable part of our business operations. With our Water Bonds, we continue to attract new investors and broaden the market for Green Bonds. As a result, issuing sustainable bonds is an important part of our funding and sustainability strategy.
Use of proceeds
We use the proceeds from our Water Bonds to provide loans to the Dutch water authorities. Water authorities are governmental bodies responsible for flood protection, water management and water quality. Climate change adaptation has become one of their key tasks. A large portion of future investments in flood control and water management are managed under the auspices of the Dutch Delta Programme, a plan devised by the Dutch government to adapt flood protection and water management to expected climate change patterns in the coming decades.
Projects financed by the water authorities focus on (a) climate change mitigation, in the form of waterway management, (b) climate change adaptation, meaning investments in climate-resilient growth (flood protection and other flood defences, and pumping stations) or (c) biodiversity projects related to water rather than directly related to the climate (i.e. sanitation and dredging of waterbeds, water treatment, transport and cleaning of wastewater, and disposal of sewage sludge).
Our Water Bonds are considered ‘Dark Green’ by the Norway-based Center for International Climate Research (CICERO), which means that they are consistent with the aim of creating a low-carbon and climate-resilient future.