In its announcement, Hellenic Bank explained that issuing such bonds demonstrates its commitment to contributing to the provision of green, social, and sustainable finance, something which is necessary for the transformation of the local economy. “As one of the primary financiers of the Cypriot economy, the issuance of green bonds will support the organisation’s strategy for sustainable finance and assist clients, businesses, and households in achieving their environmental and sustainable objectives,” the bank stated.

The bank continued by noting that the sustainable finance framework has been developed based on the bank’s ESG strategy. It outlines how the bank intends to allocate proceeds from bonds, a prerequisite for future issuances of green, social, and sustainable bonds. Specifically, the financing derived from these bond issuances will be directed towards sustainable funding. The framework aligns with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association (ICMA).

The bank also highlighted that proceeds from these bonds would contribute to financing sustainable projects involving Renewable Energy Sources, energy efficiency improvements, green buildings, low-carbon transportation, healthcare, and financing of SMEs contributing to job creation. “This commitment is reflected in the bank’s annual sustainability report for 2022, prepared in accordance with the global reporting initiative standards and based on the organisation’s new ESG Strategy,” the bank noted. “The transition to a more sustainable economy encompasses both risks and opportunities, and thus, the bank has adopted a strategic approach to sustainability and ESG matters,” the announcement added.

What is more, the bank explained that key factors in shaping the bank’s new ESG strategy included European and local strategies, the competitive environment, evolving regulatory frameworks, and materiality analysis on sustainability issues. As a result, the new ESG strategy is based on four pillars. These include carbon neutrality, the future workforce, resilience and performance, and a sustainable ecosystem.

Source: Cyprus Mail