Feb media digest – lots of green bonds media coverage – FT, South China Morning Post, Bloomberg, Reuters, WSJ, FTSE + more

Lots of major new outlets spoke green bonds in February following some high profile issuances from New York’s Metropolitan Transportation Authority and global tech giant Apple. Also in the media: Green Bond Pioneer Awards, certified climate bonds, Climate Bonds partnerships and – of course – China. A very exciting month.

Here is a selection of the best green bonds stories for February.

 

Apple green bond

Apple’s giant USD 12 bn debt issued in mid-February included a USD 1.5 bn green bond, making it largest ever US corporate green bond. Several high-profile media outlets reported on the bond. Our review of the issuance here.

Reuters, Apple issues $1.5 billion in green bonds in first sale, Valerie Volcovici

Apple has issued $1.5 billion in bonds dedicated to financing clean energy projects across its global business operations, the largest green bond to be issued by a U.S. corporation, the company's head of environmental policy said Wednesday.

Financial Times, Apple prices $12bn bond sale

The offering included a $1.5bn seven-year green bond, with proceeds from the tranche to be used for environmentally friendly purposes.

The Wall Street Journal blog: Moneybeat, Now you can own a green bond from Apple, Mike Cherney

It is Apple’s first green-bond sale, according to a database from the Climate Bonds Initiative, a nonprofit based in London that tracks the market.

Barron’s, Apple Issues Record $1.5B In Green Bonds, Teresa Riva

The offering is the biggest green bond issuance ever from a U.S. corporation, says Apple, which plans to invest in projects focused on green initiatives, from renewable energy to energy efficiency.

Fortune, Apple Just Issued $1.5 Billion in Bonds to Help the Environment

The Cupertino, California-based tech giant AAPL 1.08% said proceeds from the green bond sales will be used to finance renewable energy, energy storage and energy efficiency projects, green buildings, and resource conservation efforts.

CNBC, Apple goes green with bond

"(Apple) aims to construct a facility (in Cupertino) that is highly energy efficient and entirely powered by renewable energy," a company report said.

The Drum, Apple moves to finance clean energy push, Doug Zanger

At present, according to Apple’s environmental responsibility website page, 100% of US-based operations and data centers  — and 87% of global operations — run on renewable energy.

Writing in a blog post this week, Sean Kidney, chief executive of the Climate Bonds Initiative, said: “There is a lot of potential for the US corporate green bond market and we expected it kick off in 2015, clearly it didn’t get the momentum last year but with Apple leading the way this year we may see a ramping up of the market.”

Business Green,  Apple takes first bite out of green bond market

Speaking to news agency Reuters, Apple's vice president of environment, policy and social initiatives, Lisa Jackson, said the bond would "allow investors to show they will put their money where their hearts and concerns are".

GreenBiz, Apple is first U.S. tech company to issue green bonds, Heather Clancy

Growing investor demand, particularly by institutional investors and corporate treasuries, continues to result in over subscriptions as well as pledges to invest billions more capital into green bonds,” Climate Bonds reported in its update.

 

MTA climate certified green bond

Another VIP green bond issued in February (or VIB – very important bond…) was the Metropolitan Transport Authority (MTA),’s bond certified under the Climate Bond Standard – the biggest US certified bond to date.

FTSE Global Markets, Metropolitan Transportation Authority Issues inaugural certified climate bond

The MTA is the first US municipal bond to be certified under the Climate Bonds Standard’s new Low Carbon Transport criteria for investment in transport infrastructure (…).

Bloomberg, New York’s Subways Court Millennials With First Green Bonds, Martin Z Braun

Tax breaks, not the environment, are usually the first thing that comes to mind for buyers of New York’s Metropolitan Transportation Authority bonds.  The busiest U.S. mass transit agency, which carries 8.5 million people on a given weekday, wants to change that (…).

Reuters, New York's MTA eyes nascent 'green bond' market with $500 million bond, Edward Krudy

The $500 million in MTA revenue bonds qualify as green bonds because public transportation is considered environmentally friendly. They are certified by Climate Bonds Initiative (CBI), a nonprofit that aims to spur issuance of green bonds.

Bond Buyer, New York MTA Green Bonds Top 4-Day, $5.2B Week

Municipal bond volume is estimated at $5.2 billion for the coming holiday shortened week, led by MTA’s $500 million of green bonds.

Global Capital, New York MTA turns signals green for bond debut, Craig McGlashan, Lewis McLellan

Environmental Finance, New York MTA issues $500m 'certified' green bond, Sophie Robinson-Tillett

MTA is only the sixth issuer to use the CBI standards, and the first US municipal body to do so. Others include Mexico’s Nacional Financiera, ABN Amro, ANZ Bank, NAB and Big60million.

Switchboard, Natural Resource Defense Council Blog, Making Transportation Finance History with a Green Muni Bond, Deron Lovaas

Now that MTA has blazed the trail for green bonds, other transit agencies should seriously consider using this tool for leveraging public investments.

Progressive Railroading, MTA to sell $500 million in 'green' bonds to fund infrastructure upgrades

"By leaving their cars at home and embracing mass transit, New Yorkers play a dramatic role in reducing carbon emissions," said MTA Chairman and Chief Executive Officer Thomas Prendergast.

 

Green Bond Pioneer Awards

Leadership by international financial organisations has been recognised at the inaugural Green Bond Pioneer Awards held by the Climate Bonds Initiative and the London Stock Exchange on the 3rd of Feb in London. The full list of winners is available here.

Responsible Investor, Green bond pioneers named by Climate Bonds Initiative/London Stock Exchange: China could issue RMB60bn in 2016

Sean Kidney, CEO of the Climate Bonds Initiative, said the Green Bond Award recipients were the pioneers of the market: “They are organisations at the forefront of the global financial sector’s response to the investment challenges posed by climate change.”

India Info Online, YES Bank wins First Ever Green Bond Pioneer Award in London

YES Bank, India’s fifth largest private sector bank, has been awarded the prestigious Green Bond Pioneer Award for being the ‘Pioneers in Emerging Markets-India’ in an award ceremony at London Stock Exchange (LSE), London. 

The Economic Times, Yes Bank wins green bond award in UK

The Green Bond Pioneer Awards for 'Pioneers in Emerging Markets-India' were organised earlier this month by Climate Bonds Initiative (CBI), an international investor-focused not-for-profit which focuses on mobilising the USD 100-trillion bond market for climate change solutions. 

Business World, Yes Bank Wins Green Bond Pioneer Award In London

Yes Bank had issued India's first ever Green Infrastructure Bonds for Rs 1000 Crore with green shoe option that witnessed strong demand from leading global and domestic investors. 

 

China

While January marked a boom in green bonds issuance from China, journalists predict even faster and stronger growth for the rest of the year.

Bloomberg, China's $230 billion green bond thirst to supercharge market

China green bonds article in Bloomberg talks large numbers.

 The [green bond] market may rake in 300 billion yuan a year from now to 2020 in China alone, according to Xu Nan, a senior policy analyst at the Research Center for Climate and Energy Finance under the Central University of Finance and Economics.

South China Morning Post, Why China is tipped to beat global green bond issuance growth rate in 2016, Eric Ng

Giant green bonds issuances from Chinese institutions in January are a practical consequence of the new regulations for bank green bond issuance announced few months ago by the People’s Bank of China. Eric Ng analyses.

China’s green bond market is expected by analysts to see faster growth than the global market this year thanks to a clearer regulatory regime and its environmental commitments.

CNBC, China's central bank wants private capital for green investment, Nyshka Chandran

Nyshka Chandran about the role of private sector in fuelling green bonds growth in China.

The public sector can only provide a maximum of 15 percent [of the 2-4 trillion renminbi] so the majority will have to come from the private sector....The financial system has to play a role in mobilizing private capital for green investment. [said PBOC chief economist Ma Jun]

Global Capital, Chinese green bonds have yet to pass the test, Rev Hui

Putting volumes aside, Rev Hui calls on issuers to respect the green label.

But boasting plenty of issuance is different from having a successful market. Unlike many aspects of capital markets, volumes are not the ultimate measure of success for green bonds. Tracking proceeds and ensuring that green bonds are actually green is critical for the market to have credibility and endure.

Washington Post (by Bloomberg), ICBC plans to issue green bonds as China eyes clean environment

Bloomberg broke the news in February that Industrial & Commercial Bank of China plans to issue green bonds later this year.

The plan comes after China authorized the first sales of the securities in December, Zhou Yueqiu, head of ICBC’s urban finance research institute, told reporters after a conference in Shanghai on Thursday. Zhou didn’t provide details on the amount or timing of the offer.

SeeNews Renewables, USD 6.7bn green bonds in Jan 2016, most from China, Tsvetomira Tsanova

Round up of January green bond issuance from SeeNews Renewables – China is the biggest contributor to the USD 6.7 bn figure.

For months the Climate Bonds Initiative (CBI) has been saying that emerging markets such as China and India will help the green bond market expand to new highs.(…) This January the lion’s share of issuance came from China for the first time.

 

Climate Bonds Partnerships

 

World Business Council for Sustainable Development

Environmental Finance, CBI and WBCSD partner on corporate green bonds, Hamza Ali

Two sustainable business and finance initiatives have joined forces in a bid to boost the corporate green bond market.

Blue & Green Tomorrow, Teaming Up For Low-Carbon Finance: WBCSD and the Climate Bonds Initiative Join Forces on Green Bonds

The Climate Bonds Initiative (CBI) and the World Business Council for Sustainable Development (WBCSD) today announced a new partnership designed to drive the development of low-carbon finance that can help address sustainability climate challenges.

“Green finance is a critical part of the transition to a low-carbon economy, and we have an exciting opportunity to support the development of that market through this partnership,” WBCSD president and chief executive Peter Bakker said.

SeeNews Renewables, CBI, WBCSD to grow corporate green bond market

The two organisations have signed a memorandum of understanding (MoU) outlining joint activities directed towards building corporate understanding around the opportunities and challenges of green bonds.

 

FMO

FTSE Global Markets, Dutch Development Bank FMO becomes Climate Bonds Initiative partner

Dutch development bank FMO NV will join the Climate Bonds Initiative Partners Program effective immediately. The announcement was made by FMO CEO Nanno Kleiterp in Amsterdam yesterday at the Making Solar Bankable Conference, focussed on project development for clean energy in emerging economies.

 

Other Certified Climate Bonds

 

Hero Future Energies

Hero Future Energies (HFE), ‘heroic’ INR 3bn issuance is Asia’s first ever certified green bond.

Clean Technica, India’s Hero Future Energies Issues $44 Million Certified Climate Bond, Saurabh Mahapatra

Hero Future Energies, part of one of India’s leading industrial conglomerates – the Hero Group – recently issued the country’s first certified climate bond.

The Times of India, Hero comes out with 'climate bonds'

Climate bonds have to conform to stringent standards under the Climate Bonds Initiative, an international, investor-focused, not-for-profit organization. These papers are certified through a rigorous third-party evaluation, monitoring and reporting procedure to ascertain that the funds would actually go towards reducing carbon emissions.

 

AP Renewables

Certified climate bond from Philippines geothermal company AP Renewables Inc. (APRI) got backing from Asian Development Bank.

Manila Bulletin, ADB backs first Climate Bond in Asia in landmark $225 Million PHL deal

In a statement, the ADB said it will provide credit-enhancement to the Philippine firm AP Renewables, Inc. (APRI), a subsidiary of AboitizPower Corporation (AboitizPower), for the Tiwi-MakBan geothermal energy facilities.

Environmental Finance, Philippines geothermal firm issues credit-enhanced green bond, Sophie Robinson-Tillett

The notes have been certified under the Climate Bonds Standards.

 

 

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