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Daiwa - World Bank CO2L Bonds®

On 9 June 2008, Daiwa Securities, a Japanese stock brokerage firm and the World Bank announced the launch of the first USD denominated CER linked uridashi "cool bonds" issued by the World Bank.

The bonds were issued on 26 June 2008 and mature on 30 September 2013. The aggregate principal amount of the bonds is USD25,000,000 and denomination is USD100,000.

The bonds are principally protected and have a fixed coupons (3%) for the initial 15 months period. Subsequent interests are linked to the CER price and the difference between the actual and estimated delivery of CERs generated by the Guizho Sanhe hydropower plant located in Guizhou province, China, a UNFCCC-registered clean energy project under the Kyoto Convention. The project has a target to reduce over 23,000 tonnes CO2-equivalent per year when completed.

The bonds are underwritten by Daiwa Securities SMBC Europe Limited and arranged by Daiwa Securities SMBC Co. Ltd. and will be distributed by Daiwa Securities to Japanese investors. "CO2L Bonds" is a registered trademark of Daiwa Securities SMBC Principal Investments Co., Ltd.

For more on emission trading please see our introductory article and article on JVETS.



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Last updated July 2008

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