The bonds have a semi-annual coupon of 1.625% and mature in 2051. HSBC also acted as the sole ESG structuring agent. The proceeds of the issue are earmarked for use in accordance with the Isle of Man’s new sustainable finance framework. This is the first sustainability bond issued by the Isle of Man and is an exceptionally rare debt issue from the Isle of Man Treasury (the previous bond having been issued just over 20 years ago).
The Isle of Man is one of the seven Unesco-recognised biospheres in the UK and has a strong emphasis on sustainability. Its sustainable finance framework allows the Isle of Man to issue green, social or sustainability debt instruments that contribute to addressing climate change and the UN Sustainable Development Goals for 2030.
Dentons London team acted as lead counsel providing advice on English law to the joint lead managers.
Ernst & Young acted as financial advisers and Clifford Chance and Cains acted as legal advisers to the Isle of Man Treasury.