INDEX CONSULTATION | AUGUST 2021

Consultation on potential enhancement of theBloomberg Barclays MSCI Green Bond Index
Methodology
Proposal for Consultation
Beginning with the September 2021 rebalance of the Bloomberg Barclays MSCI Global
Green Bond Index, we propose to update the green bond eligibility criteria defined by
MSCI ESG Research and used within this suite of indexes to include bonds where anamount equal to the net proceeds raised are allocated to eligible projects.
We have seen an increasing issuance of green bonds where immediate proceeds
raised are used for general corporate purposes or for redeeming general purpose
bonds and the issuer later makes an adjustment of an amount equal to the proceeds
raised in its balance sheet towards green projects. Historically, the MSCI Green BondAssessment Methodology has considered such bonds to be ineligible. However, MSCIESG Research is now proposing to consider such bonds to be eligible, based on thefollowing:•The ICMA Green Bond Principles state that “the net proceeds of the green bond, oran amount equal to these net proceeds” should be tracked by the issuer. As theMSCI Green Bond Assessment Methodology aims to align with the ICMA Green
Bond Principles, we propose to expand our eligibility criteria accordingly.

•While this financing structure was prevalent largely in Real Estate Investment
Trusts, we are now seeing it emerging across other industries and we propose toupdate our methodology to account for this shift.

All such bonds would need to adhere to all four principles of the MSCI Green Bond
Assessment Methodology, which includes annual reporting on green bond use ofproceeds as detailed in the Methodology. If an issuer fails to report on the allocationof an amount equal to net proceeds raised within the timeframe specified in theMethodology (i.e., 18 months post issuance or post the previous green bond reporting,until bond maturity or full allocation), the bond would be deemed ineligible.
Based on this update, Figure 1 details the bonds that were historically consideredineligible but would be added to the Bloomberg Barclays MSCI Green Bond Index if
the proposed methodology update is implemented.

Figure 1. Bonds to be included in the Bloomberg Barclays MSCI Green Bond Index ifproposed methodological updates are implemented:

August 2021

INDEX CONSULTATION | AUGUST 2021

ISIN

TickerIssuer name

CouponMaturity

Issue date

CountryCcy

Amt Out(million)

US44107TAY29

HST

HOST HOTELS & RESORTS LP

3.375

15-Dec-29

26-Sep-19

USA

USD

650

US44107TAZ93HSTHOST HOTELS & RESORTS LP

3.5

15-Sep-30

20-Aug-20

USA

USD

750

US90265EAS90

UDR

UDR INC

3.101-Nov-34

11-Oct-19

USA

USD

300

US90265EAU47

UDR

UDR INC

1.915-Mar-33

14-Dec-20

USA

USD

350

CA019456AH51

APUCN

ALLIED PROPERTIES REALESTATE INVESTMENT TRUST

1.726

12-Feb-26

12-Feb-21

CAN

CAD

600

US015271AW93ARE

ALEXANDRIA REAL ESTATEEQUITIES INC

2.018-May-3218-Feb-21

USA

USD

900

XS2304340263

EQIX

EQUINIX, INC.

0.25

15-Mar-27

10-Mar-21

USA

EUR

500

XS2304340693

EQIX

EQUINIX, INC.

1.015-Mar-33

10-Mar-21

USA

EUR

600

US29444UBS42EQIXEQUINIX, INC.

2.50

15-May-31

17-May-21

USA

USD

1000

US929043AK39

VNO

VORNADO REALTY LP

2.1501-Jun-26

24-May-21

USA

USD

400

US929043AL12VNO

VORNADO REALTY LP

3.4001-Jun-3124-May-21

USAUSD350

MSCI and Bloomberg will be taking feedback regarding this proposed methodology
update till 20th August 2021. We will announce the results of the same on 26th August2021 and implement the results in the September 2021 rebalance of the Bloomberg
Barclays MSCI Green Bond Index.
If you have any objections or questions, please contact the Bloomberg Help Desk,
indexhelp@bloomberg.net, MSCI ESG team at esgclientservice@msci.com, or MSCI
Index Team at clientservice@msci.com by August 20, 2021.

© 2021 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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