21st of December 2018

RAEX-Europe provided Second Opinion for the first Green Bond issue in Russia.

On the 19th December 2018 “RSB HMAO” Ltd. (a subsidiary of “Waste Management” JSC) placed the bonds issue with a nominal volume of RUB 1,1 bn and 12,5 years maturity at the Moscow Stock Exchange (MOEX) (Registration number 4-01-00428 -R). The entire amount of proceeds will be allocated to a specific concession project in the Khanty-Mansiysk Autonomous Okrug (Russian region) devoted to creation and operation of a facility for processing, neutralizing and disposal of waste, which will have a positive impact on the current situation with waste management in the region and on the overall environmental situation.

This issuance became a historical precedent: the first actual issuance of Green Bonds in Russia. Green bonds represent a special type of bonds issued to ensure responsible financing: the implementation of programs and projects aimed at the development of green economy. When issuing green bonds on the international stock exchanges, verification of the issue is usually carried out (confirmation of the alignment with the Green Bond Principles). The second opinion of external professional organizations allows investors, governments and shareholders to ascertain the target nature of green funding, as well as to access the disclosure of the project information.” - Svetlana Grishankova, Managing director of RAEX-Europe.

 Issuance of green bonds is becoming more popular both in the West and in the East (especially in China). Total green bond issuance has increased steadily since 2007 and is expected to exceed USD 250 bn in 2018[1].

The Issuer is a member of the Concessionaires and long-term infrastructure investors National Association (CoLTI). The Association initiated the green direction among concessionaires in Russia and provided expert support for building a green system for the Issuer.

According to RAEX-Europe, the bonds placed by “RSB HMAO” Ltd. fully comply with the international standards of green bonds, in particular, the four main components of the Green Bond Principles 2018, namely: use of proceeds, process for project evaluation and selection, management of proceeds and project reporting.

It is planned to create a Sustainable Development Bond Sector at the Moscow Stock Exchange where “green” and “social” bonds will be traded. The issuer, whose bonds will be included in this Sector, will undertake additional obligations on the use of attracted funds and disclosure of information in accordance with the international principles of ICMA and/or CBI. The current issue was a special pilot project to refine the procedures for the future of the Sector.

It is expected that over time a number of government support measures will be provided to the issuers of green bonds, including the provision of budget subsidies for reimbursement of expenses of issuers for debt servicing, for verification of green/social bonds; tax deduction on income tax to issuers, etc.

On 18th of December 2018 Russian president Putin has ratified an order to ensure the earliest possible launch of the green bonds mechanism, which can increase the attractiveness of Russian investments and reduce the cost of borrowed funds when implementing environmental projects.

Report on the Second opinion and official press-release of the “RSB HMAO” Ltd. are available at:

Press Release

Second Opinion Report


[1] According to the estimations by Climate Bonds Initiative (CBI)