Today we publish our report on:
"Growing a Green Bonds Market in China
Reducing costs and increasing capacity for green investment while promoting greater transparency and stability in financial markets".
Climate Bonds Blog
Posted: Mar 31, 2014
New ClimateBonds rpt for China's State Council on 'How to Grow Green Bonds in China': kickstart with state bank green bonds; loosen regs for retail green bonds; certification; green covered bonds for munis; FDI window for green investors; and more
Posted: Mar 30, 2014
In the meantime you can read their media statement at: http://td.mediaroom.com/2014-03-28-TD-leads-environmental-commitment-with-the-TD-Green-Bond
BTW, Royal Bank of Canada is holding a green bonds forum in Toronto next Wednesday. Could it be that TD was trying to head off their arch-competitor?
Canada's TD Bank has issued a CAD500m (USD450), 3yr green bond. Very few details and there's no third party review of what they're calling "green". But we do know they're a big renewables lender; we're investigating
Posted: Mar 28, 2014
This week leading Swedish personal care and forest products company Svenska Cellulosa AB (SCA) released their first green bond at SEK 1.5 billion ($232 million). It was issued in two tranches: one SEK 1 billion floating rate note at three-month STIBOR +0,68% and one SEK 500 million fixed rate tranche at 2.5%. The bond has been issued under the company’s Euro Medium Term Note program.
Sweden's SCA issues SEK1.5bn ($232m), 5yr green bond - the 2nd viking corporate green bond issuer
Posted: Mar 27, 2014
By Bridget Boulle
The European Investment Bank (EIB) has launched its first Sterling Climate Awareness Bond, a GBP500 million, 6 year bond. This is the 9th Climate Awareness Bond EIB have issued so far this year (including taps) putting them at the top of the 2014 issuer pile with $2.94bn so far.
EIB issues first Sterling Climate Awareness Bond, upsized to GBP500m ($832m). Puts EIB at the top of issuer list for the year - nearly $3bn out in past 3 mths. Go Luxembourg!
Posted: Mar 24, 2014
By Bridget Boulle
Unilever last week joined the green bonds market with a landmark Sterling ‘Green Sustainability’ bond linked to their “Sustainable Living Plan”. This is a 4 year corporate bond, £250 million, 2% fixed rate.
The initial price indication given was G + 70-75 bps, before being refined to G+ 70 area. The deal finally priced at G + 67 bps “off the back of strong investor momentum”.
The bond was more than 3 times oversubscribed within 3 hours! There were more than 100 investors, mainly fund managers, pension funds and insurers, with a number of first-time buyers of Unilever bonds, attracted by the green aspect.
Unilever opens up Sterling green bonds with 4 yr, £250m ($411m) "sustainability" bond for CO2 & water improvements in manufacturing plants: 3x over-subscribed!
Posted: Mar 22, 2014
I know it's not fashionable in these post-crisis days, but have you ever thought of all the individual time and effort that gets saved when you replace a hodge-podge collection of bitsy currency rates with one? About the huge risk management - and paperwork - load it would from business as international trade flows grow as a percentage of the world economy?
As eminent Harvard economist, Professor Richard Cooper says, "by eliminating monetary and exchange rates as sources of asymmetric shocks among participating countries, a common currency will conduce to more stable economic activity ...."
Errrr - I meant EUR550m ($758m) not $550m for World Bank's latest bond. (Maybe it's time to revisit the idea of a common currency; would save a lot of confusion. And typos.)
Posted: Mar 22, 2014
The World Bank Green Bond we told you about last week ended up closing at EUR550 million rather than the expected EUR400 million on the back of strong demand.
The bonds were placed with 21 investors, including Aegon, AP2, Barclays Treasury, Blackrock, Caisse Centrale de Reassurance, Ikea Group, Pictet, SEB Asset Management, SNS Asset Management, Standish Mellon Asset Management Company LLC, Zurich Insurance Group and Zwitserleven. It seems all the investors were interested in the climate aspects of the bond.
Last week's World Bank Green Bond closed at EUR550m, up from expected EUR400m / EBRD does NZD12m ($10m) and BRL93m ($40m) 'sustainability' bonds
Posted: Mar 18, 2014
The European Investment Bank has been busy. A fortnight ago they "tapped" (see our recent post for what that means) their 2013 six year Climate Awareness Bond for another EUR250 million. Underwriter was Deutsche Bank.
Then last week they tapped their 4 year South African Rand (ZAR) Climate Awareness Bond for another ZAR 250m (EUR 17 million), bringing the total for the bond up to ZAR 1 billion (EUR 67 million). Lead managers were Citi and Morgan Stanley.
EIB taps yet another 6yr EUR250m climate bond + issues 4yr ZAR250m ($70m) + does a 25yr, Y5bn ($50m) Green Samurai. Who says Luxembourg is a sleepy place?
Posted: Mar 17, 2014
Toyota will close mid-next week on what will be the world's first green bond backed by auto loans - electric vehicle and hybrid car loans to be specific. And what a kickstart for that market, at $1.75 billion.
According to a report in International Financing Review (IFR), the bond will be in multiple tranches, each at a different ratings level: A2 tranche, A3 and A4 (Moody's ratings).
Wow! Toyota will this week issue a huge $1.75bn, investment grade, multi-tranche green bond, backed bond by electric+hybrid auto loans. It was going to be only $750m but demand was very strong. A new horizon opens?
Posted: Mar 17, 2014
German Index company Solactive last week launched a green bonds index, the first to hit the market. The Index uses the Climate Bonds Initiative's tracking list of green bonds as a base.
To be included in the Index, bonds need to have an amount outstanding of at least US$100 million and a minimum remaining time to maturity of 6 months. Convertible bonds and inflation-linked bonds are excluded. All bonds are weighted according to their market value with a maximum of 5% per bond.
First Green Bonds Index launched by Solactive; opens up opportunity for ETFs and improved access for smaller investors