WSC's pioneering green bond fully subscribed in hours

A €25 million green bond issued by the Water Services Corporation was fully subscribed within a matter of hours, the state company said on Tuesday.

The bond, a first of its kind for any Maltese company, was issued by the WSC to finance environmentally friendly projects.

The bond is guaranteed by the WSC and issued by Clearflowplus plc, a subsidiary of WSC. It carries an interest rate of 4.25% and has a 10-year maturity term.

The funds raised will be used to finance several green projects, including the reverse osmosis plant in Ħondoq, solar farms, wastewater treatment aeration, reducing non-revenue water and improving billing efficiencies, and water network infrastructure.

The latest tunnel to be excavated linking the Pembroke reverse osmosis plant with the Ta' Qali reservoir (Photo: WSC)

WSC CEO Karl Cilia said the bond marked a significant milestone in the company’s journey towards becoming a net zero-impact utility.

“The rapid uptake of the bond is testament to the faith our investors have in our commitment to sustainability,” Cilia said.

Today marks a significant milestone for Malta as @WSCMalta's first-ever Green Bonds, amounting to €25 million, were fully subscribed within hours. This initiative underscores @MaltaGov's commitment to sustainability and positions 🇲🇹 as a leader in green finance. - RA

— Robert Abela (@RobertAbela_MT) August 1, 2023

Energy Minister Miriam Dalli praised the initiative, stating that the successful issuance of the green bond marks a significant stride in Malta's journey towards a sustainable future.

“This initiative not only underscores our commitment to environmental stewardship but also positions Malta as a leader in green finance,” Dalli said, commending the WSC for this pioneering effort.