Nederlandse Waterschapsbank N.V. ('NWB Bank') is a regular issuer of Green Bonds since 2014. These green bonds are called 'Waterbonds'. All these transactions have been very successful and underpin the role of NWB Bank as a robust and sustainable finance partner to the Dutch public sector.
With these issues, the Bank continues to attract new investors and broaden the market span for Green Bonds. In addition to the traditional investment considerations such as safety of investment and risk-adjusted returns, a big part of the issue was bought by investors who purchased the bonds due to their interest in supporting climate-friendly projects within their investment mandates.
Proceeds from the Green Bonds will be earmarked to an internal account at NWB Bank dedicated for lending to the Dutch water authorities (“Water Authorities”). The Water Authorities are governmental bodies, employing around 11,000 people, responsible for flood protection, water management and water quality Climate change adaption is an integrated part of their tasks. A large part of the future investments in flood control and in water management will be executed under the umbrella of the Dutch “Delta Plan” a plan set up by the Dutch government to make the Dutch flood protection and water management schemes fit for the expected climate change in the coming decennia. Both heavier rainfall patterns as well as longer periods of drought are taken into consideration.
Projects financed by the Water Authorities will be according to the mandate given to the Water Authorities and managed by the Water Authorities and defined through the Dutch Water Act. In accordance with the Water Act, proceeds will be used to fund eligible projects that target (a) mitigation of climate change, being waterway management, (b) adaptation to climate change, meaning investments in climate-resilient growth (flood protection, other flood defenses and pumping stations) or (c) biodiversity projects which are related to water related biodiversity projects rather than directly climate related (i.e. sanitation and dredging of waterbeds, water treatment, transport and cleaning of wastewater and disposal of sewage sludge).