WB has raised over $1 billion with Green Bonds

Posted on 25. Feb, 2010 by in Banks, blog, Green Bonds

A day after launching a 600m Swedish Kroner Green Bond, the World Bank has launched another 10 new Green Bonds denominated in different currencies.

The 10 bonds are primarily for the new, open-ended, Nikko World Bank Green Bond fund, previously reported.

There are now quite a few banks getting used to Green Bonds: veteran SEB was sole lead manager for the Swedish Kroner issue and for two of the 10 bonds for the Nikko fund; JP Morgan has four of the 10; RBC Capital Markets has the NZD; and TD Securities is sole lead manager on three.

This latest issue takes the amount of outstanding of World Bank Green Bonds to $1.1bn.

Expect to see a lot more in 2010!

Nikko launches WB green bond fund for EU & ME investors

Posted on 23. Feb, 2010 by in blog, Energy Efficiency, Europe, Forests, Middle East, Renewable Energy

A few weeks ago we told you about Nikko Asset Management’s new World Bank green bonds fund for Japanese investors. They’ve now created a Luxembourg fund aimed at European and Middle Eastern investors. It will be available in £, US$ and Euro share classes.

The fund – the first of its kind – can invest up to 100% of its portfolio in green bonds issued by the World Bank, with funds ring-fenced for World Bank funded climate change projects such as energy efficiency, renewable energy and reforestation.

Nikko AM’s Charles Beazley says investors want: “… investment vehicles where they can be certain their money will directly help the environment without compromising their investment objectives.”  Absolutely right!

For more info see the Nikko Media Release – 22 Feb 2010.

IMF to launch green fund

Posted on 03. Feb, 2010 by in blog, Climate Bonds, Green Bonds, Low-Carbon Economy

The International Monetary Fund is planning to launch a $100 billion green fund as part of global efforts to stimulate economic growth and help finance low-carbon projects. Details of the fund and its financing are to be announced in about two weeks time.

LSE introduces retail bond trading platform

Posted on 01. Feb, 2010 by in blog, Corporate Bonds, Green Bonds

LSE is today introducing a new bond trading platform for retail bonds intended to “improve transparency and pricing” (the size of the bid-offer spreads which can be very large). The aim is to make corporate bonds more accessible for retail investors, and so to open up a new source of financing for companies and others.

At the moment only gilts and a handful of corporate bonds are on the platform, but it’s hoped that numbers will grow. Of course the initiative may not succeed (some institutions make a lot of money out of the current opacity!) . However, it could be useful and a good platform for getting / enabling retail interest in green bonds, and so worth noting. LSE might also be supportive of a green bond if it helps their platform gain traction!

Mark Mansley, Rathbones