Climate Bonds Blog

Ontario issues long-awaited inaugural green bond; CAD 500m ($448.1m), 1.75%, 4yrs, Aa2e. Mixed portfolio. Nearly 5x oversubscribed! Go Canuks!

Posted: Oct 7, 2014

Canada’s Province of Ontario has just issued the first CAD-denominated green muni bond, in what they have indicated will be an ongoing program. The semi-annual coupon is 1.75% with 4 year tenor. Moody’s have rated the bond Aa2e; DBRS AAALe. Underwriters were Bank of America Merrill Lynch, CIBC, HSBC and RBC Capital Markets.

The indicative pricing for the bond was set around CAN 1.25% 1Sep18+38.5bps. It ended up closing 0.5bp tighter than initial price guidance, at +38bps versus the benchmark Canada bond.

Investor demand was strong, with CAD 2.4bn of orders. Yes, that's 2.4bn of orders for a 500m bond. Call that "investor demand".

Ontario issues long-awaited inaugural green bond; CAD 500m ($448.1m), 1.75%, 4yrs, Aa2e. Mixed portfolio. Nearly 5x oversubscribed! Go Canuks!

Sweden’s Förvaltaren issues $55m (SEK 400m) green property bond, 5yr, AA-. Another Swedish Green City Bond!

Posted: Oct 7, 2014

Swedish real estate services company Fastighets AB Förvaltaren, owned by the municipality of Sundbyberg in Stockholm, issued its first green bond late last week. Förvaltaren have only recently re-entered the bond market after a 20 year gap with a new bond since in the spring this year (SEK350m) - and just a few months later they are issuing green bonds!

Sweden’s Förvaltaren issues $55m (SEK 400m) green property bond, 5yr, AA-. Another Swedish Green City Bond!

Under the hood: What to do with a renewable energy bond with a dash of coal? Ooooh .... tricky.

Posted: Oct 3, 2014

By Beate Sonerud, Climate Bonds Policy Analyst

This post marks the beginning of a series of “under the hood” blogs where we will do deep dives into issues we see in the green bond market.

Under the hood: What to do with a renewable energy bond with a dash of coal? Ooooh .... tricky.

China’s Trina Solar goes for a convertible solar bond: US$100m, 5yr, 4% coupon. It’s a challenging market environment for solar but the bonds keep coming.

Posted: Oct 2, 2014

China’s Trina Solar is issuing US$100m of convertible bonds with 5-year tenor and 4% annual coupon, with semi-annual payments. An extra US$15m could be raised, as Trina has given the underwriters a 1-month window to buy additional bonds.

China’s Trina Solar goes for a convertible solar bond: US$100m, 5yr, 4% coupon. It’s a challenging market environment for solar but the bonds keep coming.

World Bank goes retail with 3 small green bonds for $5m, EUR10m & $30m - all with complex coupon structures. Last one was 3x oversubscribed.

Posted: Oct 2, 2014

We are generally a proponent of “vanilla bonds”: simple bond structures that can most easily fit into institutional investor portfolios.

The world of retail bonds can be different; in fact it can look like a whole different planet with interest rate complexity seen as a selling point rather than a barrier.

World Bank goes retail with 3 small green bonds for $5m, EUR10m & $30m - all with complex coupon structures. Last one was 3x oversubscribed.

BKK utsteder de første grønne obligasjonene fra en norsk bedrift - NOK 1.1mrd ($171.7mill.), løpetid 7 år og kjøpt opp I løpet av 3 timer! Sterk etterspørsel - forvent flere grønne obligasjoner i det norske markedet

Posted: Oct 1, 2014

(For you poor non-Norwegian readers, we publish in norsk to celebrate that this is the first corporate green bond as well as largest green bond in Norway, and the first hydro-only green bond in the world.)

Av Beate Sonerud, Climate Bonds Initiative policy analyst

MIT issues green property bonds to refinance green buildings, $370m, 24 yr, 3.959% coupon, Aaae. We like!

Posted: Sep 27, 2014

I've been in Montreal today discussing the prospects for green property bonds and arguing it's as much about re-financing as new projects. We want an owner of a green hotel chain to be able to issue green bonds (and hopefully expand the chain) as much as an owner doing a new retrofit.

MIT issues green property bonds to refinance green buildings, $370m, 24 yr, 3.959% coupon, Aaae. We like!

Nordic Investment Bank issues US$500m, 7yr green bond – benchmark size & longest green bond issued by a supra in USD to date. 1.6x oversubscribed!

Posted: Sep 26, 2014

Yesterday, The Nordic Investment Bank (NIB) issued their 6^th (and largest!), green bond, to date: The USD 500mn, AAA-rated bond, with 7-year maturity and 2.25% coupon, was more than 1.6x oversubscribed, according to the bank’s press release. Joint book runners were BofA Merrill Lynch, Crédit Agricole CIB and SEB.

Nordic Investment Bank issues US$500m, 7yr green bond – benchmark size & longest green bond issued by a supra in USD to date. 1.6x oversubscribed!

Norway Fjordland's BKK dives in with a green hydro bond - NOK 1.1bn ($171.7m), 7yrs - closes bond within 3 hrs! Yes, strong demand. Expect more green hydro bonds!

Posted: Sep 26, 2014

BKK, a Norwegian power company based in Bergen, yesterday closed Norway’s first corporate green bond. It overtakes IBRD’s NOK 400m bond as the largest green issuance in Norwegian Krone.

Norway Fjordland's BKK dives in with a green hydro bond - NOK 1.1bn ($171.7m), 7yrs - closes bond within 3 hrs! Yes, strong demand. Expect more green hydro bonds!

Now here's something to like: OPIC issues $47.3m green project bond with a guarantee. Good example of how rich world can assist developing.

Posted: Sep 25, 2014

The Overseas Private Investment Corporation (OPIC) is the US government’s development finance institution. It has just issued $47.3m of something called “Green Guaranties”, also known as government-guaranteed Certificates of Participation (CoP)". The interest rate is 3.28%, tenor is 15 years and Bank of America Merrill Lynch was the underwriter.

Now here's something to like: OPIC issues $47.3m green project bond with a guarantee. Good example of how rich world can assist developing.

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