Climate Changed

First Green Bonds Sold by an Oil Giant Find Willing Investors

  • Concern that environmental bond may also aid fossil fuel
  • Sustainable investors bought 45% of the oversubscribed issue

An oil platform, operated by Repsol SA, in the Mediterranean Sea off the coast of Tarragona, Spain.

Photographer: Angel Navarrete/Bloomberg
Lock
This article is for subscribers only.

A major oil company is set to benefit from the sale of green bonds for the first time, raising concerns about standards in the quick-growing market for environmentally-friendly finance.

The Spanish refiner Repsol SA on Tuesday is due to complete the issue of a five-year 500 million-euro ($559 million) green bond, which was priced on May 9. While the funds will help Repsol cut greenhouse-gas emissions and make its facilities more efficient, some specialists in the market aren’t convinced Repsol’s security deserves the green label.

Up Next
First Green Bonds Sold by an Oil Giant Find Willing Investors