Supporting the City of Zurich with its first Green Bond

On 7 July 2023, the City of Zurich announced the successful first issuance of a Green Bond. The Green Bond has a size of CHF 300 million with a coupon of 1.70%, and a maturity of 21 years. It enables investors to invest specifically in climate protection projects and thus contribute to the achievement of the City of Zurich’s net zero climate target. The net proceeds of the Green Bond will be used to (re-)finance environmentally friendly buildings as well as other climate protection measures in the building sector such as heating replacement or support programs. The basis for the issue is the Green Bond framework of the City of Zurich, which is based on the Green Bond Principles of the International Capital Market Association.

Support by IFBC

IFBC supported the City of Zurich’s Finance Administration in the preparation of the issuance of its first Green Bond. Thereby, IFBC contributed to the focused consultation of the involved departments regarding the project and to the successful and targeted consideration of their needs. Furthermore, IFBC supported the development of the framework for Green Bonds of the City of Zurich as well as the necessary submissions to the City Council.

About the Finance Administration of the City of Zurich

The Finance Administration is the central hub for financial matters in the City Administration. It ensures financial transparency with its annual accounts, budget and medium-term planning. Around 35 employees are involved in the Finance Administration of the City of Zurich. Cities are particularly affected by climate change. Also in the City of Zurich, measures are already necessary to mitigate the increasing heat and climate-related damage. To significantly mitigate global warming, greenhouse gas emissions worldwide must fall to net zero by 2050 at the latest. The City of Zurich aims to become climate neutral by 2040. For the City Administration, net zero applies by 2035.

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