Climate Bonds Blog

Musings from Manila on bridging the gap between young and capital needy emerging markets and capital rich ageing countries

Posted: Sep 16, 2014

I’m in Manila, in the Philippines. It’s been gusty and raining – there’s a typhoon crossing the northern part of the island. A modest reminder of last year’s devastating storm that destroyed the southern coast of Luzon.

I’m here for a meeting of an "International Expert Group on Using Climate Finance to Leverage Sustainable Transport". Ironic really, as it took an hour to get 12kms through the crazy traffic from the airport. But of course this is a not a rich country; the route to the ubiquitous glass skyscraper zone I’m in passes through acres of teetering favelas, piled up close to the edge of the airport.

Musings from Manila on bridging the gap between young and capital needy emerging markets and capital rich ageing countries

ECB’s decides to buy asset-backed securities and covered bonds – let’s make that green securities!

Posted: Sep 14, 2014

In the most recent European Central Bank (ECB) meeting, it was announced that the ECB is starting a purchase program for asset-backed securities (ABS) and covered bonds. EU’s finance ministers were yesterday discussing how to restart securitisation markets. This adds to the announcements earlier this summer that the EU’s capital requirements for covered bonds and ABS under Solvency II are expected to be lower than initially planned.

ECB’s decides to buy asset-backed securities and covered bonds – let’s make that green securities!

AFD goes BIG with first climate bond and gets investor diversification - EUR 1bn ($1.3bn), 10yr, AA/AA+, coupon 1.37, Bravo France!

Posted: Sep 13, 2014

France’s bilateral development bank, Agence Française de Développement (AFD) entered the green/climate bond market in style this week with a huge first issuance of EUR 1bn. Tenor is 10 years with a coupon of 1.37% and strong rating of AA/AA+ (S&P and Fitch). Bookrunners for the issuance were Bank of America Merrill Lynch, BNP Paribas, Credit Agricole CIB and HSBC.

AFD goes BIG with first climate bond and gets investor diversification - EUR 1bn ($1.3bn), 10yr, AA/AA+, coupon 1.37, Bravo France!

Alert: California is about to issue its first $200m green bond, the second US State to do so. + Massachusetts ups to $350m

Posted: Sep 12, 2014

Rating from Fitch's is 'A Stable'. Expected to close in a couple of weeks.

Also, Massachusetts has upped it's green bond coming out next week from $250 to $350 million. Investor demand I guess.

Now can you guess which will be the third US State to issue a Green Muni? It's in the works.

Yes, this means a US Green Muni market is readying for take-off.

Alert: California is about to issue its first $200m green bond, the second US State to do so. + Massachusetts ups to $350m

Alert: nine days to go before 2nd Mass. Green Bond due out - 17 Sept - $250m this time, up from $100m last time.

Posted: Sep 9, 2014

In June last year the State of Massachusetts was the first to market in the USA with a green Muni. They're about to go again - their bond sales calendar has them going to market next week, on 17 September, with a new $250 million "general obligation" green bond.

The Massachusetts Treasury have been doing a lot of work on showing investors exactly where bond proceeds are going, in minute detail. Keep an eye out for disclosures with this next bond.

Alert: nine days to go before 2nd Mass. Green Bond due out - 17 Sept - $250m this time, up from $100m last time.

Reminder: climate bonds seminar 18th Sept, San Francisco’s Green/Climate Bond briefings and discussions with CBI & California State Controller. Register now, event is free.

Posted: Sep 8, 2014

California State Controller John Chiang & State Treasurer Bill Lockyer invite you to a San Francisco Climate Bonds seminar with Sean Kidney, on Thursday 18 September 2014.

RSVP to info@climatebonds.net, limited seats available.

There are two separate meetings:

8.30-11am is for Investors and the Finance Sector. Program:

Reminder: climate bonds seminar 18th Sept, San Francisco’s Green/Climate Bond briefings and discussions with CBI & California State Controller. Register now, event is free.

Proposed Climate Bonds Green Property criteria allow top 15% of buildings to be used to back green bonds; positive feedback so far; consultation period now closes 30 Sept

Posted: Sep 8, 2014

Green buildings are central to a shift to a low-carbon economy; the International Energy Agency(IEA) tells us that deep cuts in building emissions are needed to head off catastrophic climate change.

Proposed Climate Bonds Green Property criteria allow top 15% of buildings to be used to back green bonds; positive feedback so far; consultation period now closes 30 Sept

EIB issues new climate bond with longer tenor (12yr), EUR 500m ($657m), coupon 1.25%, AAA. Takes EIB total climate bond issuance to EUR 6bn!

Posted: Sep 4, 2014

European investors yesterday snapped up a new Euro denominated “Climate Awareness Bond” from EIB. With double the tenor of the EIB’s 2013 6yr issuance this bond provides a longer time horizon for investors that reflects “the duration of renewable energy and energy efficiency projects”.

Issuance amount was EUR 500m with a coupon of 1.25%. The joint bookrunners were Credit Agricole CIB, DZ Bank, Rabobank and Raiffeisen Bank International.

EIB issues new climate bond with longer tenor (12yr), EUR 500m ($657m), coupon 1.25%, AAA. Takes EIB total climate bond issuance to EUR 6bn!

World Bank does a 10yr, AAA $12.06m green retail bond especially for Merrill Lynch Wealth Management clients. Harbinger?

Posted: Sep 2, 2014

A new green retail bond has been issued by the World Bank in conjunction Merrill Lynch Wealth Management. The bond has 10 year tenor, coupon of 2.32% for the first 5 years which gradually increases to a maximum of 8.82% and is callable after the first year. A very interesting approach, presumably carefully worked out with Merrill Lynch.

World Bank does a 10yr, AAA $12.06m green retail bond especially for Merrill Lynch Wealth Management clients. Harbinger?

Arise Wind issues a 2nd corporate green bond: SEK 350m ($50m), 3yr, floating rate. Should we be bringing all pureplay renewable energy corporate bonds into the green bond list?

Posted: Sep 2, 2014

Arise AB, the Swedish integrated wind power company, has announced issuance of a SEK 350m green bond, their second green bond in 2014. It is a senior unsecured bond with a floating interest rate of 6% above STIBOR 3M.

Arise Wind issues a 2nd corporate green bond: SEK 350m ($50m), 3yr, floating rate. Should we be bringing all pureplay renewable energy corporate bonds into the green bond list?

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