We've heard that EIB has just done a SEK900m tap, taking the amount of this 2019 maturing bond to SEK3bn ($466m) in total. Buyers were Swedish institutional investors. No further details yet, except that SEB was the underwriter.
(BTW, in my earlier email about the NIB EUR40m bond I mistakenly noted SEB as the underwriter - an error - I meant to say Credit Agricole CIB. This EIB SEK bond is the SEB one.)
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Anne Simpson of CalPRS, at last month's UN Investor Summit on Climate Risk, warning that catastrophic climate change will be a disaster for investors:
"There will be no place for CalPRS to invest in a 4 degree climate warming world."
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FYI, United Nations Secretary-General Ban Ki Moon, speaking in Davos a couple of weeks back, gave the climate bonds idea a plug:
"We need investors, banks and other financial service providers to increase finance flows into low-carbon energy and climate-resilient infrastructure, including through setting portfolio targets and increasing the deployment of climate bonds."
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We get asked a lot: "What do I tell my CIO when they ask why public transport is relevant to green?" In three points ...
- According to the International Energy Agency (IEA), the transport sector is responsible for 23% of all energy-related CO2 emissions globally and 13% of total GHG emissions. It’s a big slice.
- More miles driven will come at a huge cost to the climate unless we start decarbonising transport today, and will not only result in a significant increase in energy use, congestion and CO2 emissions but also impact wider development ambitions.
- As the world becomes increasingly urbanized, large scale improvements in the transport sector are essential if we are to achieve a transition to a low-carbon and climate resilient economy.
The Climate Bonds Low-Carbon Transport Working Group is developing criteria for what transport investments can be used to issue for Certified Climate Bonds. Electric rail criteria coming first, then low-emission vehicles, etc.
