With independent assurance companies mitigating the risks of bonds-“greenwashing”, the focus has now shifted towards measures that ensure a green bond remains a green bond until the end of its maturity and that issuers’ reporting about the developments of their green projects is in fact true.

S&P withdrew its green evaluation report, emphasising that the residual bonds were different to what had been evaluated at the time of the initial bonds offer.ĭespite market observers welcoming these steps and some investors appreciating the tender opportunity after their holdings lost their expected environmental benefits, the high profile project has renewed some investors’ scepticism towards green issuances. While this offer placated investors concerned about the value of their investments, the green evaluators involved in the project took immediate action: Moody’s lowered its green bond assessment from GB5 (highest score) to GB1 (lowest score), noting that the proceeds (40% of scoring) no longer constitute qualifying environmental projects. Upending market confidence and receiving harsh critique from investors for an initial offer, the government launched a buy back package, capped at $1.8 billion of $6 billion outstanding, with a buyback price of par plus accrued and unpaid interest. However, in October 2018, the newly elected Mexican government shocked investors when it announced to halt the construction of the airport, following a public referendum in the same month that had resulted in a majority of voters demanding for the new airport not to be built.Īfter the shock outcome, the green airport bonds unsurprisingly underperformed the market – by as much as 200 basis points in November.

New mexico city international airport