Waste group Shanks first UK firm to issue a green bond in Europe

WASTE management group Shanks is becoming the first UK firm to issue a green bond in euros, with a €150m (£106m) offering.

Shanks announced yesterday it is selling a seven-year bond with a coupon of 3.65 per cent. With an issue price of 101.875 on the dollar, that gives a yield of 3.345 per cent.

Shanks said it had chosen the Belgian and Luxembourg market “because it is a leading Belgian waste-to-product company and it has a successful history with two previous successful bond issues in the market.”

A green bond is one which meets stringent criteria showing the funds will be used for environmentally beneficial purposes. Shanks said it would use the money for “our program of investment in sustainable infrastructure”, and to pay off another bond.

Shanks said the bonds will be available in €1,000 denominations, and will be listed on the main market of the London Stock Exchange. BNP Paribas Fortis and KBC Bank are leading the deal.

Last year $36.59bn worth of green bonds were issued, according to the Climate Bonds Initiative’s chief executive Sean Kidney. He said $12.45bn has been issued so far in 2015 and he expects issuance of around $80bn for the year.