Pakistan will raise its first green bonds next week

According to Bloomberg, Pakistan is preparing to issue its first green bond next week to raise $500 million.

This bond sale could pave the way for Pakistan to present more similar instruments in the future to fund its hydroelectric projects.

According to WAPDA Chairman Muzammil Hussain, the green bonds will be issued by the Water and Power Development Authority (WAPDA) this month and will be a 10-year note.

Over the next two years, the WAPDA also plans to provide more environmentally friendly debt, according to him.

Green debt, for example, is gaining popularity around the world for environmentally friendly projects. Pakistan aims to increase renewable and hydroelectric generation in the total energy mix, and hopes to tap into this growing investor demand globally.

According to the news article, Pakistan plans to have these energy generation sources contribute 60% of total electricity output by 2030.

The funds from the planned dollar bond, according to Hussain, will be used to finance the Diamer Basha and Mohmand dams.

He said, "We are leading the charge against fossil fuels."