Swedish company Arise Windpower has just announced the successful issuance of a SEK1bn ($167m) 5 year green bond linked to wind farms. Interest rate was set at 3% above STIBOR (the Stockholm Interbank Offered Rate).
Arise indicated that investor interest was 'strong', partly due to the green stamp on the bond.
While we report mainly about larger scale climate bonds, we're also seeing more small-scale, retail-focused bond issuance. We aim to cover these on an occasional basis (so let us know your sightings!). Two from the UK this month:
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This week Chinese wind power developer, Longyuan Power closed a $400m senior hybrid bond deal (a mixture of debt and equity where holders are given the option to convert the bond into equity after a specified time period).
In an interesting development for “thematic” bonds, Air Liquide Finance yesterday issued a 9 year, €500m “SRI (Socially Responsible Investment)” corporate bond. Coupon: 2.125%, rated "A Positive Outlook" by S&P. Manager was the ground-breaking Credit Agricole (Tanguy Claquin of course).
