Analysing the green bond media coverage in July brings an obvious conclusion: the momentum is growing. We now find ourselves in a position of having to heavily filter the coverage for this digest. – and this month we have chosen 28 media stories worth sharing with you.
Climate Bonds Blog
Posted: Aug 1, 2014
Lots of media coverage in July digest: FT, Economist, Forbes & much more
Posted: Aug 1, 2014
By Bridget Boulle
UK retailer Sainsbury’s recently announced that it’s joining the green debt space with the first ‘green loan’ to invest in carbon reduction and sustainability projects.
The loan will be used to finance renewables, energy efficiency, water use management and carbon reduction, some of which are part of the company’s Project Graphite – a plan to invest in various technologies such as photovoltaics and LED lighting in their stores.
UK retailer Sainsbury’s 5yr GBP200m “green loan” opens up a whole new area for green debt instruments
Posted: Jul 25, 2014
I’m in Cambodia, visiting the amazing Ankgor Wat, ancient religious centre of a city that apparently had a population of half a million people in 1200 AD. The temple’s bas-reliefs are full of triumphal armies, marching through exquisite carvings of trees and forests. They liked their green.
We haven’t yet seen a lot of green bond action in Asia – just Kexim a year ago – but things may be about to change.
Taiwan's ASE issues Asia's first corporate green bond - $300m, BBB, 6yrs - and it's SIX times oversubscribed!! Asian green bonds may be about to blast off.
Posted: Jul 22, 2014
The Dutch fund manager ACTIAM has joined the Climate Bonds Standard Industry Working Group. ACTIAM used to be called SNS Asset Management (SNS AM).
ACTIAM has EUR 44.2 billion of assets under management (@ Dec 2013). It has a long history of using a responsible investment approach across its activities. ACTIAM already has several hundred million of Euro green bonds on its books, for a wide range of clients.
EUR 44bn ($58bn) Netherlands fund manager ACTIAM (formerly SNS AM) joins Climate Bonds Standard Industry Working Group to help develop green bonds eligibility criteria.
Posted: Jul 17, 2014
LONDON, 17 July 2014 – The Climate Bonds Initiative today launches its 2014 market sizing report “Bonds and Climate Change: the state of the market in 2014”. The report was commissioned by the HSBC Climate Change Centre of Excellence.
> Download it: A4 version (printable) ... or ... magazine style A3 version (much nicer but hard to print)
The report finds that:
Launched today: annual "State of the Market" report from Climate Bonds Initiative/HSBC reveals $502.6 billion climate-themed bond universe + much much more
Posted: Jul 16, 2014
By Beate Sonerud, Climate Bonds analyst
Neo Solar Power Corp, the largest solar cell maker in Taiwan, recently issued a convertible bond of US$120mn.
FinanceAsia reported that it is a 3-year bond, with no coupon or yield, but a 10% conversion premium (NT$39.05; stock price at issuance date NT$35.50). The conversion premium was somewhat low, as guidance indicated 10-15%. Proceeds of the bond will be used to buy solar sell raw materials such as silicon wafers.
Taiwanese solar cell manufacturer Neo Solar issues a US$120mn, 3yr convertible bond. Proves viability for green bonds in uncertain policy environments
Posted: Jul 16, 2014
We knew it was coming, but the size is a surprise. Go Germany!
German’s development bank, KfW (Kredit für Wiederaufbau) has just issued its inaugural Green Bond, at a whopper EUR 1.5 billion (£2.03 billion). If you want make a splash, that’s the way to do it.
Interest rate is 0.375%; yes, that is very very low, like all AAA German government bonds ... this really is the time to finance a rebuild of the world's infrastructure as green!
Germany’s KfW dives in deep with EUR 1.5bn ($2bn), 5yr AAA green bonds. Go Germany!
Posted: Jul 16, 2014
Zurich Insurance, one of the world’s largest insurance companies, announced yesterday saying it was “doubling its commitment to green bonds”, up to $2 billion.
Last November it gave a mandate to BlackRock to invest up to $1 billion in US denominated green bonds. The second billion will be invested in green bonds denominated in Euros, Sterling and Swiss Francs, reflecting the extent to which European green bond issuance has dominated the market over the past nine months.
Zurich Insurance says it will invest a target $2bn in green bonds in Europe & US
Posted: Jul 16, 2014
London: Thursday 17 July 2014, 4-6pm; kindly hosted by Shearman & Sterling, 9 Appold St, London EC2A 2AP
Frankfurt: Monday 21 July 2014, 12:30-2pm; kindly hosted by Allianz Global Investors,Bockenheimer Landstraße 42-44 Frankfurt
RSVP: info@climatebonds.net
The report, commissioned by HSBC, is the only one to analyse and estimate the size of the wider climate bonds universe which goes beyond the much-publicised ‘labelled’ green bond market and includes all bonds that finance climate change solutions.
We are leaking some key figures before the launch and here is a taste:
REMINDER: Remember to register for the launch event of the annual 'Bonds & Climate Change: The State of the Market in 2014' report: Thu 17 July London, Mon 21 July Frankfurt + Leaked figures from the report
Posted: Jul 15, 2014
District of Columbia Water have just announced the close of the first 100 year maturity ‘green century bond’ to finance water projects. Yes, you read that right, 100 years!
DC Water issues AA+ $350m ‘green century bond’ – yes that’s right, the very first 100 year green bond! Now THAT is tenor. Plus, it’s the first US green bond to get an independent review – at last!