First certified agricultural green bond lays seed for global trend

Author: John Crabb | Published: 28 Jun 2019

A green bond issued by Los Fideicomisos Instituidos en Relación con la Agricultura – or FIRA – has opened the floodgates for similar issuances that are backed by technological advancements in the agricultural space.

The MXN2.5 billion ($130.6 million) issuance was the first of its kind to be ratified using new criteria from nonprofit Climate Bonds Initiative (CBI) that allows asset classes in the agricultural sector to be certified as green bonds. Called the Protected Agriculture Criteria, the initiative "lay(s) out the requirements that protected agriculture assets and projects must meet in order to be eligible for Climate Bonds Certification".

It is the first time that greenhouse technology such as this has been considered a green investment. "Given that FIRA sat on a pretty substantial portfolio of assets it was a chance to bring something new into the market that we hadn't seen before, particularly given that agriculture is so...