Sustainable Use of Proceeds Government bonds are bonds whose proceeds are used exclusively to finance or re-finance eligible green and social projects with positive environmental, climate and/or social benefits.
Conventional bond proceeds allow the issuer full discretion with regards to using the proceeds to finance the budget. Sustainable Use of Proceeds bonds are different in that their proceeds can be used only to finance specific projects of environmental and/or social nature the allocation of proceeds and the impact of the projects has to be reported to investors.
The Council of Ministers approved the Sustainable Bond Framework of the Republic on the 8th of March 2023. The framework defines the priorities and objectives of the Republic in environmental and social areas, explains the use of proceeds and describes the evaluation and reporting mechanism by the Republic.
Cyprus Sustainable Finance Framework (02 23).pdf
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