Fiji green bond – the first sovereign green bond from a developing country – was the big story this month that attracted media coverage from all around the world. Hispanic media took a lot of interest in the Brazil edition of the State of the market 2017 report. This and lots more in the media digest for a busy October!
MARKET
Financial Times, Sustainable finance: the path to growth, Ethiopis Tafara, IFC
The author says that advancing sustainable development in emerging countries requires hard work and cooperation of banks, regulators, policymakers and development institutions. She focuses on the key achievements of The Sustainable Banking Network’s: one of them is a group set up to accelerate growth of the green bond market across member countries.
Second, the network established a group to accelerate growth of the green bond market across member countries. One area of focus will be to provide countries options for consolidating and standardising the array of approaches and definitions that have sprung up in this space.
World Finance, Green bonds: thinking strategically about climate change, Alex Katsomitros
“Going green makes both environmental and financial sense” – the author explains why and how.
But the ultimate weapon against illiquidity could be government action, according to Kidney: “The first thing governments can do to grow a market is to get demonstration issuance out to show others and provide liquidity. The poster child for this is France.”
Thomson Reuters Zawya, Islamic finance for green initiatives: An unfulfilled potential, Shalini Seth
Zawya’s insight into potential posed by green Islamic finance includes overview of the work of The Green Sukuk and Working Party (GSWP) and several observations from Sean Kidney.
Climate Bonds’ Kidney remains optimistic about the future of Islamic finance initiatives for sustainable development. “We see Malaysia fulfilling its traditional role but we also see significant opportunities in Indonesia and the Middle East. Interestingly enough, we have quite a lot of interest in smaller markets such as Kenya and Nigeria,” he said.
Gulf Times, Green sukuk set to become sustainable investment tool, Arno Maierbrugger
Echoes of world’s first green sukuk from Malaysia resonate in another article that looks at Islamic finance.
Another initiative emerged in the Gulf Cooperation Council, where three institutions, Masdar City’s Clean Energy Business Council for Mena, the Climate Bonds Initiative and the Gulf Bond and Sukuk Association, set up the “Green Sukuk and Working Party” as a collaboration of experts in project development, environmental standards, capital markets, and Islamic finance.
Global Capital, Green finance and the role of government, Ma Yun
The author, chairman of the Green Finance Committee of China Society for Finance and Banking, argues that “laissez-faire” approach to greening the financial system is not enough. He believes governments, regulators and multilateral development banks need to play a more prominent role.
China’s relatively new green bond market, which accounted for 30% of global green bond issuance since 2016, provides an excellent example of government action that helped quickly create a sizeable green market.
FT Adviser, Green bonds are crying out for global standards
An article – part of the FT’s special report ‘Delivering Income’ – looks at green bond market developments to date and lists The Green Bond Principles, Climate Bonds Standard and Moody’s GBA as the three key market efforts to develop commonly accepted standards.
One problem has been a proliferation of definitions, each claiming to accurately describe the characteristics of a green bond. For example, the commonly accepted definition of a green bond in China requires only 50 percent of the revenue from a green bond to be used for green projects, compared to a general international rule which expects 95 percent of revenue to contribute.
Business Green, BNP Paribas AM launches €100m green bond fund, as sector confirms record 2017 performance
Climate Bonds Initiative confirms sector has already surpassed the record $81.6bn of green bonds issued in 2016.
VanEck, Green Bonds Surge Past 2016 Levels
In 2016, $7.3 billion of green bonds were certified under Climate Bonds Standard, demonstrating growing investor demand for this level of assurance.
Barron’s, ESG Investing? Don’t Forget About Bonds, Amey Stone
When it comes to investing with ESG criteria, stocks get most of the attention. But bonds may be a better way to go. These funds are a start.
FOREIGN COVERAGE
El Economista, Bonos verdes se acercan a su meta, Judith Santiago
“Hay mucho margen de maniobra para alcanzar la meta del Climate Bonds Initiative de 130,000 millones de dólares en emisiones verdes para el 2017 y tres años para alcanzar el cada vez más de alto perfil de 1 billón de dólares en el 2020, que será un hito en las finanzas verdes globales”, dijo Figueres.
La Tribune, La France numéro 3 mondial durable de la finance verte, Delphine Cuny
Si l'on regarde la totalité des green bonds existants, émis depuis 2005 selon les chiffres au 30 juin 2017 du rapport de Climate Bonds Initiative pour HSBC, la France se situe également au troisième rang mondial (32 milliards de dollars) (…)
El Cronista, ¿Cuán verde son los bonos verdes?, Pablo Cortínez
El total de bonos verdes emitidos durante el primer semestre de 2017 creció un 50% respecto de igual periodo de 2016. La última estimación de Climate Bonds Initiative habla de unos u$s 150 mil millones para el presente año
Finans, Grøn tsunami på vej fra Kina, Jan Lund
Dette er et af de mange initiativer, som central regeringen har godkendt for at skifte supertankerens [China] kurs til grøn,, forklarede Sean Kidney, chef for Climate Bonds Initiative og rådgiver for Bank of China til Financial Times med tilføjelsen: From zero to hero.
ASIA
South China Morning Post, China is shifting the green bond market with “green financing”
An article provoked by the President Xi Jinping endorsement for green finance at the Communist Party congress and rumors of the Hong Kong’s ‘central bank’ planning to issue a green bond next year. The author created an in-depth but concise analysis of the green bonds market in China with the challenges it faces.
In terms of financial performance in the onshore market, China green bonds have outperformed central government bonds and the aggregate overall bond market. The China Central Depository & Clearing Co., Ltd. (CCDC), together with CECEP Consulting and the Climate Bonds Initiative, developed two indices to track green bonds issued in the onshore market (…)
Caixin Global, China’s Winning Formula for ‘Green Bond’ Investment, Malcolm Surer
The article includes interesting excerpts from the interview with Wang Yao, director general of the International Institute of Green Finance at the Central University of Finance and Economics in China.
Wang: „Some investors are reluctant to invest in Chinese green bonds, saying the Chinese market is harder to fully comprehend. This is one of the reasons China and the EU are now harmonizing their green bond standards. When foreign investors find Chinese green bonds easier to understand, their appetite is expected to increase.”
China Dialogue, Ma Jun: ‘Europe and China have different priorities’ on green finance, Xue Han
An article based on an interview with Ma Jun, chair of the Green Finance Committee presents an interesting insight into Chinese perspective on the green bonds market.
Ma Jun:” For developing nations such as China, it’s not just about reducing carbon emissions – we also want to deal with a range of environment issues, such as air, water and soil pollution. Some of those issues aren’t significant problems in Europe. So when defining green bonds, Europe and China have different priorities.”
South China Morning Post, Regulator to set benchmark for companies to issue green bonds in Hong Kong, Karen Yeung, Peggy Sito
BRAZIL EDITION OF THE „STATE OF THE MARKET” REPORT
PV Tech, Brazilian green bond issuance exceeds US$3.5 billion, Conor Ryan
A new report from the Climate Bonds Initiative noted that the Brazilian green bonds market has now reached US$3.67 billion.
Renewables Now, Brazil green bonds top USD 3.5bn, 42% for clean energy
In the first and second quarter of 2017, total of USD 288.4 billion of bonds were issued in the country. Green bonds represented just 0.2% of that
Environmental Finance, Brazil poised for more green bonds, Graham Cooper
EF reporting from the ‘Building a New Economy in Brazil through Green Finance’ event at the Brazilian Embassy moderated by Sean Kidney.
Three wind energy companies received second opinions on their green bond frameworks in the first quarter of this year but the issues were delayed by volatile market conditions which have now calmed down, said Sean Kidney, CEO of NGO the Climate Bonds Initiative.
Environmental Finance, October Green Bond Round up
CBI calls for government support to boost Brazilian green bond market.
Valor Econômico, Brasil já emitiu US$ 3,7 bi em bônus verdes, Daniela Chiaretti
O mercado brasileiro de títulos verdes de dívida, os chamados "green bonds", ultrapassou os R$ 11 bilhões - ou US$ 3,67 bilhões, com estimativa de alcançar US$ 4 bilhões até o fim do ano.
Folha de S. Paulo, Títulos verdes são 0,2% dos títulos de dívidas do mercado brasileiro
De acordo com a segunda edição do documento, o mercado brasileiro de títulos verdes emitiu, por empresas nacionaid, R$ 11 bilhões.
IstoÉDinheiro, “As mudanças climáticas estão provocando uma revolução na economia mundial”, Rodrigo Caetano
Ten questions for Sean Kidney.
UOL Economia, Apex quer mais títulos verdes financiando a expansão agrícola, Anna Hirtenstein
Os instrumentos financeiros podem aproximar investidores internacionais em busca de rendimento e regiões do Brasil que precisam financiar projetos de infraestrutura, segundo Sean Kidney, presidente da Climate Bond Initiative.
Economia Hoy, Brasil emitirá bonos verdes para financiar un impulso de su agricultura
"Los bonos verdes son una forma de financiar proyectos sin usar el dinero de los contribuyentes", dijo Sean Kidney, máximo ejecutivo de Climate Bond Initiative, una organización que promueve los bonos verdes
EvolVerde, Brasil supera R$ 11 bilhões em emissão de títulos verdes, Dal Marcondes
O relatório global de Análise de Mercado de Títulos de Dívida e Mudanças Climáticas é a publicação anual da Climate Bonds Initiative, encomendada pelo HSBC. O capítulo brasileiro foi escrito em parceria com a SITAWI, especialista em finanças sustentáveis do Brasil, e o Banco Interamericano de Desenvolvimento.
Petroleum Economist, Brazil goes green, Beth McLoughlin
Slowly emerging from the worst recession in its history, Brazil is now trying to lure investors back to its energy sector but not for hydrocarbon exploration. Instead, the country is focusing on the launch of greener energy projects.
FIJI BOND
World’s third sovereign green bond and the first-ever from a developing country was issued by Fiji. Media covered the story intensively.
Reuters, Fiji to sell world's first climate-change "green" bonds, Sonia Feng
Fiji will issue a $50 million “green” bond in coming weeks to help combat the effects of global climate change, the first developing country to do so (…)
Global Capital, Fiji green bond has domestic buyers, international structure, Jon Hay
Fiji is set to become the third country to issue a sovereign green bond with a F$100 ($50m) issue in Fiji dollars.
The Straits Times, Fiji to sell world's first climate-change 'green' bonds
The Pacific Island nation is seen as particularly vulnerable to climate change, with some of its 300 low-lying islands susceptible to rising seas.
Fiji Broadcasting Corporation, Fiji first emerging market to green bond, Elenoa Turagaiviu
Prime Minister and President of COP23 Voreqe Bainimarama says with this bond, Fiji has demonstrated that green capital markets can be created in emerging economies.
Global Capital, Fiji’s example to help as IFC talks green bonds with SE Asian banks, Jon Hay
The main purposes of Fiji’s green bond issue are to highlight the importance of climate change, especially to Island states, and to „lead by example” for other issuers in the Pacific region, said officials at the International Finance Corp who worked on the deal.
Fiji Sun, We’re First In Region With Green Bond, Jyoti Pratibha
Fiji has become the first country in the Pacific, the first emerging economy and the first small island state to issue a $100 million Green Bond.
Climate Action, Fiji issues first developing country sovereign green bond of $50 million for climate resilience
The green bond will primarily be used for climate resilience, but also on renewable energy projects (…)
Climate Home News, Fiji announces $50m ‘climate bond’ ahead of COP23 presidency, Megan Darby
“We can no longer ignore this (climate) crisis,” he said [Fiji’s prime minister], as reported by Reuters. “An absolute dedication to meet the 1.5C target is what we need and what we must take to Bonn.”
Clean Technica, Fiji Issues Sovereign Green Bond Worth $50 Million,
Several other countries are expected to issue similar bonds; Climate Bonds Initiative lists Morocco, Nigeria, Sweden, and Kenya as potential issuers of such bonds.
Fiji Times, Fiji's Green Bonds over subscribed, Lice Movono
Announcing the end of the first tranche today, Fiji's Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum said investors had over-subscribed by more than $47million.
Radio New Zeland, Fiji Green Bond attracts keen interest
The government plans to eventually raise $FJ100 million (US$48 m) through the sovereign bonds.
Xinhuanet, Fiji's first developing country green bond arouses overwhelming interest: minister
The minister said Fiji would use all proceeds for environmental projects to achieve a 100-percent renewable energy and reduce its carbon footprints by 30 percent by 2030.
STANDARDS
Strasser Capital Certified Bond
In October Strasser Capital announced an issuance of a second green loan tranche. Similarly to the first one, it received the Climate Bonds Standard certification. More in the company’s media release available in German.
FTSE Global Markets, Strasser Capital receives the GO for its second green loan tranche
After verification through oekom research AG, one of the world’s leading sustainability rating agencies, Climate Bonds has officially certified this second tranche, and is being be offered to investors as ‘Climate Bond Certified’.
Investor Ideas, Strasser Capital receives the GO for its second green loan tranche: Double Certification for the MEP Green Financing Programme
"From Climate Bonds perspective it is vital to see the private sector engaging and innovating in green finance. Strasser Capital is a pioneer in both German and EU green finance markets, for solar energy and has demonstrated its commitment to best practice by issuing two Certified green loans", states Sean Kidney, CEO of Climate Bonds Initiative.
PV Magazine, Grünes Licht für die zweite Green-Loan-Tranche
Die Münchner Strasser Capital GmbH, eine der wenigen deutschen Emittenten der innovativen Finanzinstrumente Green Bonds bzw. Green Loans, erhält von der Climate Bonds Initiative gleich zwei Zertifizierungen für ihr MEP Green Financing Programm.
MARINE RENEWABLE CRITERIA
In October we launched the Marine Renewable Energy Criteria – this means that investments in marine renewables can now receive Climate Bonds Certification.
Renewables Now, Marine renewables criteria launched for Climate Bonds Certification
The new set of requirements join the criteria already in place for wind, solar, geothermal, transport, buildings and water. They cover both established and emerging marine renewable energy technologies, including offshore wind, offshore solar, wave power and tidal power.
JSE GREEN BOND SEGMENT
JSE – The South African stock exchange celebrated the launch of its Green Bond Segment. Its flagship bond (Cape Town green bond) is certified under the Climate Bonds Standard.
ESE Africa, JSE launch Green Bond Segment
The City of Cape Town green bond, which is already listed on the JSE’s bond market, was certified by the Climate Bonds Initiative, while international ratings agency Moody’s also awarded it an excellent GB 1 rating.
IOL, Investors must join climate change fight and invest in green bonds, Patricia De Lille
An article contributed by the Mayor of Cape Town.
Our green bond was certified by the Climate Bond Initiative’s Climate Bond Standard and received a GB (1) excellent rating from Moody’s.
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