Moody’s seeks feedback on proposed evaluation of green bond issuers

By Lisa Kerner

Charlotte, N.C., Jan. 15 – Moody’s Investors Service announced it is seeking comments from market participants on its proposed approach and methodology for evaluating an issuer’s management, administration and reporting on environmental projects financed through green bonds.

The company will accept comments through Feb. 12 at moodys.com.

Moody’s proposed assessment of green bonds will focus on five primary factors: organization structure and decision making; use of proceeds; disclosure on the use of proceeds; management of proceeds; and ongoing reporting and disclosure, according to a news release.

The company’s Green Bonds Assessment will apply to fixed-income securities, both taxable and tax-exempt, that raise capital for use in projects or activities with specific climate or environmental sustainability purposes.

According to Moody’s, $36.6 billion of green bonds were issued during 2014 and an additional estimated $42 billion came to market during 2015.

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