January green bonds media digest: FT says green bonds will “keep flying off the shelves in 2020”! And much more from AFR, IFR, Bloomberg and others

2019 Summary & 2020 Market Predictions

 

Climate Bonds Initiative (more)

 

The Wall Street Journal, What Are Green Bonds?, Simon Constable

 

In 2019, global sales of green bonds totaled $231 billion through mid-December, more than 60 times as much as in 2013, according to the Climate Bonds Initiative, a U.K.-based nonprofit that aims to promote investment in climate-change solutions. The organization expects that total to exceed $250 billion for the full year.

 

Reuters, Green bond issuance hit record $255 billion last year, research shows, Nina Chestney

 

Global green bond and loan issuance climbed by nearly 50% last year to a record high of almost $255 billion, as more investors sought to raise capital to support efforts to combat climate change, an analysis by the Climate Bonds Initiative (CBI) shows.

 

InfoTimes,《國際金融》綠色債券火熱,今年規模暴增可期

 

另據氣候債券倡議組織(Climate Bonds InitiativeCBI)資料,截至12月中為止,2019年全球綠債銷售累計達2,310億美元,此為2013年的逾60倍。CBI旨在提振氣候變遷解決方案投資金額。該機構預期,以2019全年來看,總銷售額將突破2,500億美元。

 

Le Devoir, Finance vert pâle, Gérard Bérubé

 

Sur le marché obligataire mondial, le Climate Bonds Initiative (CBI) a estimé que les obligations « vertes » émises lan dernier totalisaient 255 milliards $US. (…)  Quant à la couleur réelle de l’étiquette, le CBI chiffrait à 42 milliards la valeur des obligations émises l’an dernier certifiées vertes, alors qu’un total de 213 milliards était aligné sur la définition du CBI.

 

Le Devoir, Le difficile éveil des obligations vertes, Angélina Boulesteix

 

L’an dernier, sans compter les banques, « les entreprises ont représenté le pôle le plus important pour les émissions de dette verte, avec près de 60 milliards de dollars » sur un total qui devrait dépasser 250 milliards, selon Manuel Adamini, responsable du Programme de sensibilisation des investisseurs de la Climate Bonds Initiative, organisme international de référence.

 

Boursorama, Les emprunts "verts" de plus en plus utilisés par les entreprises

 

En 2019, les entreprises, sans compter les banques, "ont représenté le pôle le plus important pour les émissions de dette verte, avec près de 60 milliards de dollars" sur un total qui devrait dépasser 250 milliards, détaille Manuel Adamini, responsable du Programme de sensibilisation des investisseurs de la Climate Bonds Initiative (CBI), organisme international de référence.

 

El Economista, Emisión global de bonos verdes avanzó 35% en 2019, Judith Santiago

 

No obstante, no se logró llegar a la meta anual fijada en 250,000 mdd, quedándose a 7.52% del objetivo delineado por el Climate Bonds Initiative.

 

Expansión, BBVA anticipa un nuevo récord de bonos verdes: 320.000 millones de dólares en 2020, Inés Abril

 

Y eso que la previsión de BBVA es conservadora. La organización Climate Bonds Initiative espera que el mercado supere los 350.000 millones de dólares y que llegue incluso a los 400.000 millones de dólares, aunque en su cómputo incluye también los préstamos verdes y no solo los bonos.

 

Business Green, Green bonds reach record $255bn in 2019 with issuance set to soar in 2020s, Michael Holder

 

Sean Kidney, chief executive of Climate Bonds Initiative, said in a statement: “2019 results and 2020 estimates bring the vital international milestone of of $1tr in annual green investment by 2021/2022 into sight,”.

 

Expert Investor Europe, Green bonds forecast: investments to break through $1trn, Elena Johansson

 

Acceleration into trillions of annual investments to support transition, adaptation and resilience must become the hallmark of the new decade.” [added Kidney).

 

Business Recorder, Green bond issuance hit record $255 billion last year

 

“The 2019 results and 2020 estimates bring the vital international milestone of USD 1 trillion in annual green investment by 2021/2022 into sight,” said CBI’s CEO Sean Kidney.

 

World Crunch, If Finance Rules The World, Green Bonds May Be Planet's Only Hope, Gema Sacristán

 

CBI expects record emissions of green bonds this year, perhaps worth up to $250 billion, and total emissions of up to $400 billion in 2020. Green bonds have seen quantitative and qualitative growth, with a constant arrival of new emitters and sectors beside a high degree of innovation.

 

Markets Media, 2020s Will Be Decade of ESG, Shanny Basar

 

Sean Kidney, chief executive of Climate Bonds Initiative, said in a statement: 2019 results and 2020 estimates bring the vital international milestone of $1 trillion in annual green investment by 2021/2022 into sight.

 

Renewables Now, Global green bond, loan issuance tops USD 250bn in 2019

 

Kidney added that the "acceleration into trillions of annual investments to support transition, adaptation and resilience must become the hallmark of the new decade.

 

Climate Action, Green bonds issuance hit $255 billion in 2019, Rachel Cooper

 

Global green bond and loan issuance climbed by 49% last year to a record high of $249.5 billion, analysis by Climate Bonds Initiative found. Of this total, 2.6% were green loans.

 

edie.net, Green bond issuance soared to $185bn in 2019, report reveals

 

The Climate Bonds Initiative last week released a new blog claiming that global green bond issuance now stands at more than $773bn (£590.7bn) cumulatively, speculating that the total could surpass the $1trn mark in 2020, despite a slowdown in growth between 2017 and 2019.

 

Enerji Günlüğü, 2019’da küresel yeşil tahvil ihracı yüzde 49 arttı Kaynak: 2019’da küresel yeşil tahvil ihracı yüzde 49 arttı

 

Oil Review, Объёмы зелёного финансирования выросли на 50% и превысили $250 млрд в 2019 г

 

Energy and Industry of Russia, От «зеленых» облигаций ждут первого триллиона

 

Moody’s

 

Financial Times, Green bonds set to keep flying off shelves in 2020, Billy Nauman

 

Green bonds are red hot. Issuance smashed through analystsprojections in 2019 and is set to continue expanding this year as sustainability-minded investors snap up almost every deal that hits the market. 

 

Environmental Finance, Green, social and sustainability bond issuance to hit $400bn in 2020

 

Green, social and sustainability bond issuance will hit a combined $400 billion in 2020, up 24% from the previous record of $323 billion achieved in 2019, Moody's Investors Service has predicted.

 

BloombergNEF

 

Bloomberg, Climate Threat Spurs Record Sales of Sustainable Bonds and Loans, Alastair Marsh

 

Green bonds, where the proceeds are used for environmentally-friendly projects, made up the majority of the issuance last year, totalling $271 billion, the data show.

 

Reuters, Global sustainable debt reached record $465 bln last year -BNEF, Nina Chestney

 

Green bonds accounted for more than half of the total sustainable debt market last year with issuance rising to $271 billion from $182 billion in 2018.

 

Business Green, 2019 a breakthrough year for sustainable debt, new figures show, Toby Hill

 

Latest BloombergNEF data shows growth in green bond issuances outstripped even the most bullish forecasts, as sustainability-linked loans also made substantial gains.

 

QualEnergia.it, Con obbligazioni e prestiti “verdi” la finanza sostenibile fa il pieno nel 2019

 

Tali prestiti, spiega BNEF in una nota, hanno raggiunto 122 miliardi di dollari nel 2019 segnando un boom del +168% rispetto ai dodici mesi precedenti.

 

Dealogic

 

Global Capital, Corporate green bond issuance hits record levels, Mike Turner

 

There have been $6.68bn of bonds printed that have a green, social, sustainable, sustainability or climate tag, according to Dealogic.

 

Refinitiv

 

The Asset, Global Green Bonds: 2019 full year review

 

Green bonds gained momentum as diversity of issuers (both sovereign & corporate) continued to grow as the market share to global bonds has more than tripled since 2015.

 

Pensions & Investments, China leads in green bonds, others catching up, Charles McGrath

 

China has led the world in green bond issuance since 2016, but saw its dominant grip loosen in 2019 as proceeds fell more than 21% from 2018's issuance. Among the top 10 issuers, all but China had at least double-digit growth in 2019.

 

Environmental Finance

 

Environmental Finance, Green Bond Comment January 2020: Towards the first trillion

 

Issuance of green, social and sustainability bonds surged about 40% in 2019, with combined issuance reaching $290 billion, according to preliminary data from Environmental Finance's Bond Database.

OTHER MARKET NEWS

 

Financial Times, The inconvenient truth about green gilts, Tommy Stubbington

 

UK’s Treasury continues to “swim against the tide” and refuses to issue green gilts.

 

Investors are desperate to buy green gilts” — UK government bonds whose proceeds are set aside for environmentally friendly spending. But the man in charge of Britains borrowing seems determined to turn down their cash.

 

Australian Financial Review, Europe's heavy blow against natural gas, Tony Boyd

 

Sean Kidney talking to Australian Financial Review explained how excluding natural gas from the EU’s green taxonomy will impact the economic relations between Australia and Europe.

 

"What you are going to get is the EU saying to Australia unless you have solid policies for reducing carbon emissions we are going to punish you," he says. Kidney says gas-fired power was found to be ineligible for inclusion as a sustainable investment because of the "huge leakage of fugitive emissions of methane gas during the extraction process".

 

OMFIF, Green bonds dispel niche market’ status, Daniel Palotai and Istvan Veres

 

Just as we have recently praised the Magyar Nemzeti Bank (which is Hungary’s central bank), its Chief Economist and Head of Treasury Division explain why green bonds hold a special place in the heart of the Hungarian central bank.

 

It [the green bonds market] already benefits from comprehensive frameworks such as the Green Bond Principles (…) and Climate Bonds Initiative, widely accepted taxonomies and an industry of external reviewers. A soon-to-be-released European Union green bond standard may give another boost to the market.

 

Helagotland, Gröna obligationer rör sig i en gråzon, Jörn Spolander

 

Author worries that green bonds issued by companies too often do not stand up to investors’ expectations.

 

I vissa fall är det förhållandevis tydligt, som när det spanska oljebolaget Repsol använde pengar från sin gröna obligation till att öka utvinningen av fossila bränslen, om än med lite mer energisnåla metoder. Detta kritiserades kraftigt av bland annat den inflytelserika organisationen Climate Bonds Initiative. I andra fall är det mindre självklart och öppet för tolkning.

 

Environmental Finance, CBI opens public consultation for agriculture criteria

 

The Agriculture Technical Working Group (TWG) working under the Climate Bonds Standard has published and opened for public consultation the agriculture criteria. (more)

 

The Climate Bonds Initiative (CBI) has opened a public consultation for the proposed expansion of the Climate Bonds Standard into sustainable agriculture.

 

 

In the meantime, in Davos, Refinitiv, in conjunction with - among others - the Climate Bonds Initiative has launched the Future of Sustainable Data Alliance.

 

International Financing Review, Refinitiv launches the Future of Sustainable Data Alliance, Tessa Walsh

 

Data company Refinitiv is partnering with a host of other organisations to launch the Future of Sustainable Data Alliance, which aims to identify, consolidate and standardise ESG information and mobilise capital into sustainable finance by removing one of the biggest blocks to its development: the lack of standardised data.

 

Finextra, Davos 2020: Refinitiv launches sustainable data alliance

 

Founding partners of the Future of Sustainable Data Alliance include the World Economic Forum, United Nations, IIF, OMFIF, Tsinghua University, ASIFMA, GFMA, Climate Bonds Initiative, FinTech4Good, Everledger, Institute of Public and Environmental Affairs, Bank of Africa-BCME, GoImpact among others.

 

Eco-Business, Refinitiv announces the launch of the future of Sustainable Data Alliance

 

First-of-its-kind alliance has been formed to drive the acceleration of sustainable finance through data; founding members include Refinitiv, World Economic Forum, United Nations, IIF, ASIFMA, Tsinghua University, OMFIF, GFMA, Climate Bonds Initiative (…).

 

 

REGIONAL NEWS

LatAM

 

The European Sting, How green investment will help Latin America and the world fight climate change, by World Economic Forum

 

In Latin America, the appetite for green bonds is set to surge.

 

In 2019, Latin American and Caribbean countries issued close to $5 billion in green bonds, bringing the regions overall historic total to $13.6 billion, according to the Climate Bonds Initiative. In mid-2019, more than 300 investors showed interest in buying Chilean green bonds. Now, those bonds are helping Chile invest in things like green buildings and electric buses.s

 

AL DÍA, Green bonds: a step towards a carbon-neutral future for Latin America, Ana María Enciso Noguera

 

The article takes an in-depth look into findings of our report Latin America & Caribbean: Green finance state of the market 2019

 

As the Climate Bonds Initiative report shows, the other markets in Latin America are smaller, but still have interesting singularities: Peru was the first country in the region to issue green bonds, which have been used for the development of clean energies (wind and solar, especially)

 

Asia

 

香港01, 【綠色金融】綠債成新浪潮 香港宜「借北風」建環保金融生態圈

 

Hong Kong’s green finance landscape analysed in detail.

 

2018年全球綠色債券發行規模達到1,673億美元,雖然跟全球約55萬億美元的總債市規模尚有一段距離,但據氣候債券倡議組織(Climate Bonds Initiative, CBI)的報告估算,於2030年前全球應對氣候變化需高達90萬億美元的投資,綠色金融發展尚有極大空間,料會繼續高速增長。

 

Financial Times, Chinese companies get to grips with tougher ESG disclosures, Patrick Temple-West, Nian Liu

 

Reporting on toughening up of ESG disclosure regulations in China, author brings attention to the quality of green bonds issued in the country.

 

But some foreign investors remain wary. In the third quarter of 2019, only 40 per cent of green bonds from Chinese issuers were in line with international norms on the use of proceeds, according to the Climate Bonds Initiative, a London-based non-profit organisation.

 

Financial Times Moral Money, Moral Money: 20 things to watch in 2020, Gillian Tett, Billy Nauman, Andrew Edgecliffe-Johnson and Patrick Temple-West

 

China’s ambitions to become world’s ESG leader listed among 20 things to watch in 2020 by Moral Money.

 

China is already a world leader in green bond issuance. Many western banks say its bond disclosures fail to explain how proceeds will be used for eco-friendly purposes. But pressure is rising for better disclosure since in 2020, China will simultaneously be looking to increase foreign investments and cut pollution — and deep-pocketed European pension funds will demand action before they invest.

 

Bloomberg, Green Boom May Limit Japan Bond Sale Slowdown After Record, Ayai Tomisawa

 

Sales of the green notes in Japan may double in 2020 thus offsetting the likely slow down in corporate issuance.

 

The bond-sale frenzy has increased the cash Japan Inc. holds even more to a record 513.2 trillion yen. While the plentiful funding hasnt translated to a major rise in capital spending, companies may be using the cash more to boost shareholder returns including stock buybacks, according to bankers. Rising interest in green notes may also help Japan catch up with other advanced economies in sales of the debt to finance environmental projects.

 

The Business Times, Growing evolution of green finance in Singapore, Cedric Rimaud, Loo Choo Leong

 

Authors talk about growing evolution of green finance in Singapore, early adopters of green financing among real estate companies in the region and the benefits of the Climate Bonds Standard.

 

Green bonds certified by the Climate Bonds Initiative have already exceeded US$100 billion globally, demonstrating the value of creating a solid, science-based standard for financial markets.

 

 

CERTIFIED BONDS

 

Chile’s 3rd sovereign green bond

 

Reuters, Chile anuncia emisión de bonos verdes en euro y nueva colocación a 20 años

 

Chile ordenó a los bancos BNP Paribas, Santander y Societe Generale liderar una oferta de bonos verdes en euros registrados en la autoridad de valores estadounidense, informó el martes IFR, un servicio de información financiera de Refinitiv.

 

Latin Finance, Chile comes to dollar market with more green bonds, Jo Bruni

 

Sovereign issuers earns $1.65 bln from a two-part debt deal one day after raising more than $2 bln from euro-denominated green bonds.

 

PV Magazine, Chile obtiene una tasa récord en emisiones de bonos verdes en dólares, Pilar Sánchez Molina

 

El portafolio de proyectos considerado fue certificado, al igual que el de 2019, según los estándares de Climate Bonds Initiative (CBI), una de las principales ONG especializada en la definición de estándares globales y verificables para este tipo de instrumentos. Cabe señalar que la certificación constituye el estándar más alto para este tipo de bonos.

 

América Economía, Chile logra récord con la emisión de bonos verdes por US$6.228M

 

La operación incluyó la emisión de un nuevo bono verde con vencimiento en 2032, por US$750 millones, así como la reapertura del bono verde con vencimiento en 2050, emitido en 2019, por US$900 millones.

 

People’s Daily (Spanish), Chile logra récord con la emisión de bonos verdes por 6.228 millones de dólares

 

El ministro de Hacienda, Ignacio Briones, señaló a la prensa que "los resultados de esta operación, en conjunto con los ya obtenidos en la emisión en euros, confirman el alto grado de confianza de largo plazo en nuestro país por parte de los inversionistas internacionales”.

 

Chile Reports, Chile obtains record rate on issuance of green bonds in dollars

 

The portfolio was certified, as in 2019, according to the standards of the Climate Bonds Initiative (CBI), one of the main NGOs specializing in the definition of global and verifiable standards for instruments of this type. It is important to note that the certification is the highest standard for bonds of this type.

 

Global Capital, Chile wins green certification ahead of bond return, Oliver West

 

La Tercera Pulso, Chile obtiene tasa récord en emisiones de bonos verdes en dólares

 

Primicias, Crédito barato para Ecuador ¿para cuándo será?, Francisco Briones

 

Energia Limpia XXI, Chile obtiene tasa récord en emisiones de bonos verdes impulsando energía solar, eólica y mitigación al cambio climático

 

Yahoo Finanzas, Tipo de cambio deja sin opciones al Central: Chile Renta Fija

 

Global Legal Chronicle, Republic of Chile’s 1.686 Billion Green Bonds Offering,  Ambrogio Visconti

 

Renew Power

 

International Financing Review, ReNew Power prices US$450m 7.1-year green bond at 5.875%

 

LiveMint, ReNew Power raises $450 million through dollar bonds, Ridhima Saxena

 

Sustainable energy firm ReNew Power Pvt. Ltd has raised $450 million through a dollar bond issuance, said D. Muthukumaran, the companys chief financial officer.

 

Inc42, ReNew Power Secures $450 Mn Funds Through Dollar Bonds, Kritti Bhalla

 

ReNew Power’s CFO D Muthukumaran told Mint that the company received an encouragingresponse from investors across the US and Europe.

 

Saun Energy International, Indian IPP ReNew Power Raises $450 Mn via Dollar Bonds Route

 

Renewables Now, India's ReNew Power issues USD 450m in bonds - report

 

Economic Times India, Renew Power seeks $300 million in bond sale, Joel Rebello

 

EQ International,  ReNew Power likely to have priced its dollar bonds

 

Mercom India, Solar Developer ReNew Power Raises $450 Million Through Dollar Bond Issue,  Nithin Thomas Prasad