Basel: Green Bond to finance construction projects

The issue is a contribution to the still limited offer of green financial investments in Switzerland, according to a statement by the canton of Basel-Stadt. The green bond is aimed at pension funds and special funds, among others. The canton benefited from its strong "AA+ with positive outlook" rating, it added. The issue was supported by Basler Kantonalbank.

According to the canton, the green bond will be used to finance the new building at Maiengasse 7/11, the conversion of the Elsässerstrasse commercial and cultural center (Volta Nord), the Volta Ost neighborhood extension, the new building for the FHNW School of Business on the Dreispitz site and the new building for the Office for Environment and Energy on Spiegelgasse. These projects would be characterized by high energy efficiency, ecological construction and a mixed user structure, the canton says.

According to its own information, Basel-Stadt is the first canton in German-speaking Switzerland to issue a Green Bond to finance environmentally sustainable construction projects. Green bonds work like conventional bonds, but the money is earmarked to finance projects that contribute to environmental sustainability. The canton of Basel-Stadt is guided by the international Green Bond Principles, and an independent auditing company monitors compliance with the framework conditions, the statement said. (ah)