In a move aimed at accelerating the transition to cleaner urban transport, Moscow plans to roll out a new green bond program. The initiative is designed to channel funds into environmental projects, notably the replacement of diesel buses with electric models across the city’s public fleet. The strategy is being led by the city’s economic and property departments, with senior officials outlining how the bonds will function and who can participate.
Under the program, any adult resident of Russia who is a tax resident may purchase bonds ranging from a minimum of one thousand rubles up to fifteen million rubles. The bonds come with a quarterly coupon of eight and a half percent per year, a rate that authorities describe as competitive within the domestic fixed-income market. Tax rules are straightforward: when income from the bonds is paid, a 13% personal income tax is automatically deducted and remitted to the national budget. Officials estimate that the proceeds could fund the acquisition of roughly forty fully electric buses, contributing to lower emissions and quieter streets in the city core.
Additional assurances are being offered by the Moscow Department of Economic Policy and Development regarding the securities. They emphasize that the bonds will not be listed on the stock market, reducing certain market-related risks for investors. Moreover, there is a built-in safeguard: the city can repurchase the bonds at their purchase price if the owner wishes to sell, with the income earned during ownership preserved as part of the investment’s overall return.
In late spring communications, officials reaffirmed the plan for investors to participate in a green financing program that targets urban environmental improvements. The overall objective is to fund projects that modernize the transportation network, reduce fossil fuel reliance, and support a more sustainable urban environment. The program reflects a broader trend toward green debt instruments that seek to align city development goals with investor confidence and environmental stewardship, while offering transparent terms and predictable income streams for participants.