Neutral Capital Finance PLC was incorporated in the United Kingdom for the sole purpose of issuing debt for Neutral Fuels’ projects. The $250m MTN Bond Programme has issued two bonds to date.


The Series Two Bond has been verified by Sustainalytics, a Morningstar company that provides ESG research, ratings and data to support global investors with the development and implementation of responsible investment strategies.



Series Two

Series One




The energy world is steadily becoming more distributed, digital, and decarbonised. Neutral Fuels supports the circular economy with their local/local/local strategy. They source local waste oil, produce biodiesel locally, and dispense it for the local commercial transportation market. Their end-to-end equipment and processes are enhanced with technology and robust digital assets that enable paperless operations and a fully auditable waste-to-energy stream. Neutral Fuels’ biofuel emits 83.6 % less CO₂e compared with mineral diesel. Source : Etacarinae S.r.l., Milan, Italy 2019, 2020

Neutral Fuels actively supports the United Nations Sustainable Development Goals (SDGs), helping to achieve them via their products, solutions and technologies, in particular:


The International Capital Markets Association (ICMA) Green Bond Principles are a set of voluntary guidelines that recommend transparency and disclosure and promote integrity in the development of green financing instruments. The Neutral Fuels Green Bond Framework follows the ICMA Green Bond Principles (GBP) 2018, which provides guidelines in the form of four core components:

  1. Use of Proceeds

  2. Process for Project Evaluation and Selection

  3. Management of Proceeds

  4. Reporting

The Framework may be subsequently revised or updated as the gre en finance market continues to evolve.


The proceeds will be loaned from the Issuer to Neutral Fuels Overseas Holdings Ltd (the “Borrower”). The Borrower was incorporated for the sole purpose of borrowing from the Issuer under a secured loan agreement and will on-lend the proceeds to the Eligible Green Projects via ProjectCos in multiple jurisdictions to meet the Neutral Fuels local/local/local strategy. The proceeds will be used by each ProjectCo to:

  1. finance the planning, construction, equipping and management of local biofuel facilities in 16 major cities (in emerging and developing countries);

  2. refinance existing green debt; and

  3. pay the costs associated with the issuance and distribution of the Green Bond.

The Green Bond is asset-backed and will afford Bondholders Senior Secured status by providing security over biofuel
facilities and their associated assets, as well as the ProjectCos’ shares, bank accounts and contractual receivables. The
Issuer’s security is governed by and enforceable under English Law with security in all other jurisdictions pledged to the
trustee under the secure trust structure, governed by the local law of the ProjectCos. All Neutral Fuels’ Eligible Green
Projects are 100% eligible to Green Bond.

ICMA GBP Category

ICMA GBP Category

Eligible Green Projects

Eligible Green Projects

EU Environmental Objective (Taxonomy Regulation)

EU Environmental Objective (Taxonomy Regulation)

Eco-efficient and/or circular economy adapted products, production technologies and processes.

Capital expenditure for waste cooking oil collection, tracking, transportation, and all related equipment ,vehicles, certifications, sensors, and activities. Financed vehicles will be electric or run on biodiesel or biodiese lblends, with an emission threshold of 25gCO₂/t-km. Certifications include ISCC for oil collection.

Transition to a Circular Economy: Prevents orreduces waste generation, supports high quality recycling of waste, prolongs the use of products, increases the development of the waste management infrastructure, avoids dangerous or irresponsible disposal of waste.

Clean transportation.

Capital expenditure for:

  • Planning, developing, constructing, equipping, and managing biofuel facilities which are dedicated to producing biofuel from waste cooking oil.

  • Transporting, mixing, dispensing, and tracking of biofuels, where transport vehicles are either electric or run on biofuel/biofuel blends with an emission threshold of 25gCO₂/t-km.

  • Expenses for all technology, sensors, certifications, and patents related to biofuel production processes, methods, and equipment. Biofuel dispensing includes pumps and tanks installed at customer sites. This also includes the electronic fuel dispensing system used to track sales and for billing.

The Borrower has identified a preliminary list of locations where they will construct biofuel facilities and implement end-to-end biofuel services by 2024:

  1. Muscat

  2. Cape Town

  3. Nairobi

  4. Jeddah

  5. Johannesburg

  6. Doha

  7. Bikaner

  8. Colombo

  1. Lusaka

  2. Kigali

  3. Kuwait City

  4. Djibouti City

  5. Cairo

  6. Casablanca

  7. Maharashtra

  8. Manila

Transition to a Circular Economy: Prevents or reduces waste generation, supports high quality recycling of waste, prolongs the use of products, increases the development of the waste management infrastructure, avoids dangerous or irresponsible disposal of waste.

Climate Change Mitigation: Increases clean or climate-neutral mobility

Pollution Prevention and Control: Improves levels of air quality in areas of economic activity.


The process of evaluating and selecting eligible projects and allocating Green Bond proceeds to eligible projects comprises the following steps:

The decision forum will also be responsible for the following activities:

  1. Review, select, validate and monitor the pool of Eligible Green Projects, based on sustainable policy, enterprise risk valuation and the Green Financing Framework.

  2. Identify the proper impact metric that best describes the environmental benefits.

  3. Draft, verify and validate annual reporting for investors.

  4. Monitor the on-going evolution towards Sustainable Capital Markets in terms of disclosure/reporting in order to be in line with market best practices.

  5. Review the Framework to reflect any changes involving the Company’s sustainability strategies and initiatives.


Neutral Fuels will strive, after adjustments for intervening circumstances including, but not limited to, refinancing existing Neutral Fuels Green debt, to fully allocate proceeds to Eligible Green Projects within 36 months from issuance.

Pending the full allocation to Eligible Green Projects, Neutral Fuels will hold and/or invest the balance of net proceeds at its own discretion into cash or cash equivalents (e.g., money market funds).


Neutral Fuels will produce and keep readily available reporting on the allocation of net proceeds to the Eligible Green Projects and, wherever feasible, reporting on the impact of the Eligible Green Projects, at least at the project level, after a year from the issuance of the applicable Green Bond, to be renewed annually until full allocation of the Green Bond net proceeds. Any material developments, such as modification of the Framework or allocation portfolio, will be reported in a timely manner. The reporting will be via market announcements (published via London Stock Market’s RNS service), with each announcement filed on Neutral Fuels’ website (Investors page).



Potential indicators are listed below:

These indicators may be supplemented by qualitative and/or case study reports on outcomes and impacts of the projects funded. Where relevant, information may be provided on data reporting and impact assessment methodologies to increase transparency.

Neutral Fuels intends to align, on a best effort basis, the reporting with the portfolio approach described in "Green Bonds - Working Towards a Harmonized Framework for Impact Reporting (April 2020)”.

This Green Bond Framework has been externally reviewed by Sustainalytics.