The Water Services Corporation has launched a €25 million, 10-year bond that it is marketing as “Malta’s first-ever Green Bonds.”

The bonds, which are open to both institutional and retail investors, will have an interest rate of 4.25% and are guaranteed by WSC. Their framework has been issued by Clearflowplus plc, a subsidiary of WSC.

WSC said in a statement announcing the bond issuance that it intends to use bond money to finance a number of its projects.

They include a reverse osmosis plant in Ħondoq ir-Rummien, wastewater treatment plants, and enhacements to the water network.

The company also intends to use bond money to develop a solar farm above a large reservoir in Ta' Qali, as part of a joint venture with the Malta Chamber of SMEs. 

“These projects will help to address some of the most pressing water challenges facing Malta, including water scarcity, climate change, and pollution. They will also help to create jobs and boost the economy,” the company said in a statement.

WSC CEO Karl Cilia described the bond issue as a “landmark event.”

“We arethe first company in Malta to take this 'green' step, we are thrilled to be one of the first water utility companies pursuing such a green initiative,” Cilia said.

The bonds are in line with the UN’s Sustainable Development Goals and the EU’s Green Deal and have been certified by the Climate Bonds Initiative. Certification means the international organisation has assessed that the bond proceeds will be used to finance projects that are consistent with the Paris Climate Agreement and address climate change.