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Hello, I am Tony Forleo, A 30-Year-Old Award-Winning Angel Investor And An Optimistic Individual With The Dream Of Being An Inspiration For All.

Preparation Stage

  • Define Objectives: Identify the projects/assets to be financed (e.g., renewable energy, energy efficiency, clean transportation, green buildings).
  • Check Eligibility: Ensure they qualify under international standards such as the Green Bond Principles (GBP) by ICMA or local SEBI/RBI/ECB guidelines (if in India).
  • Choose Issuer Type: Government, municipal corporation, financial institution, or corporate entity.

2. Framework Development

  • Green Bond Framework: Draft a document covering:
    • Use of proceeds (eligible green projects).
    • Project evaluation and selection process.
    • Management of proceeds (tracking funds separately).
    • Reporting commitments (annual impact reports, allocation reports).
  • Alignment: Ensure the framework aligns with GBP/Climate Bonds Standard.

3. External Review / Certification

  • Second-Party Opinion (SPO): Engage an independent agency (e.g., Sustainalytics, CICERO) to validate the framework.
  • Certification/Verification: Some issuers also seek Climate Bonds Initiative (CBI) certification.

4. Structuring & Regulatory Approvals

  • Structuring: Decide on tenor, coupon rate, currency, and size.
  • Approvals: Seek approvals from regulator/board/credit rating agencies. In India, SEBI has specific Disclosure Requirements for Green Debt Securities.
  • Documentation: Draft Information Memorandum/Prospectus incorporating green bond details.

5. Issuance

  • Marketing: Present the green credentials to investors (roadshows, presentations).
  • Book-Building / Auction: Collect bids from investors.
  • Allotment & Listing: Allocate bonds and list them on stock exchanges (e.g., NSE/BSE Green Bond Segment, LSE, Luxembourg Green Exchange).

6. Post-Issuance Obligations

  • Use of Proceeds: Deploy funds strictly to green projects.
  • Tracking: Maintain a separate account/ledger to track allocation.
  • Reporting:
    • Annual Allocation Report – where proceeds are deployed.
    • Impact Report – measurable environmental benefits (CO₂ avoided, renewable energy generated, etc.).
  • External Audit: Some frameworks require annual third-party verification.
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