Before diving into the latest green bond offerings let’s not forget that green bonds were created because “no challenge poses a greater threat to future generations than climate change” (thanks to President Obama for the eloquent statement). Shifting capital to climate investments through green bonds is one way of addressing the challenge. Thought leaders in development banks have been heavily supporting green bond issuance, with such institutions accounting for 44% of the green bond market in 2014. This year it looks like they want to keep that strong market share – check out their latest offerings below.
EIB increases Climate Awareness Bond by €250m ($298m) to a total issuance of €1bn, 1.25%, AAA
After a jam packed 2014, issuing over $5.6bn of green bonds, European Investment Bank (EIB) looks set to continue its stellar performance having tapped its 2026 Climate Awareness Bond (CAB) last week. The CAB was first issued last September and has a 1.25% coupon. S&P has rated the bond as AAA.
The €250m ($298m) tap takes the bonds total issuance up to €1bn (from 750m). The scale of the CAB programme is great for increasing liquidity crucial for bond market growth
The lead managers for the deal were Credit Agricole-CIB, Commerzbank, Deusche Bank, DZ Bank and JP Morgan.
World Bank issues an Indian Rupee denominated green bond for Uridashi investors, INR 348.5m ($5.7m) 4.2%, AAA, 5 yr
Talking of last year’s trends, the World Bank has this year continued to issue green bonds in different currencies with its latest denominated in Indian rupees. The World Bank has now issued green bonds in an 18 different currencies – that’s pretty fantastic!
The INR 348.5m ($5.7m) green offering targeted at Japanese retail investors is known as an Uridashi green bond (meaning a green bond issued in a foreign currency for domestic Japanese investors).
Tenor for the bond is 5 years and it has a semi-annual coupon of 4.2%. The bond is rated AAA and, as with all World Bank bonds, it has an independent second opinion from CICERO. Credit Agricole was the lead manager of the deal.
Our blogs are written by a team: Sean Kidney, Tess Olsen-Rong, Beate Sonerud, with a bit of help from Justine Leigh-Bell.