You're invited to two events:
A presentation by DNV on 'How Climate Bonds certification works', 2 May 2013, 10.30am
Recent climate bonds from the IFC and KEXIM show that there is appetite among institutional investors for this type of asset class. However, uncertainty remains about what "climate" or “green” means, particularly where corporate issuers are concerned.
Reuters reports that MidAmerican Energy is expected to soon issue a second tranche of its Topaz solar bond. MidAmerican is owned by Warren Buffet's Berkshire Hathaway (does this give the bond a halo effect)? Barclays Capital, Citi and Royal Bank of Scotland are underwriting. The first Topaz bond was for $700m and was issued in February last year.
> US utility ConEd are in the process of placing $220m of senior secured fixed-rate notes, similar to covered bonds, in the 4(2) Private Placement market. Proceeds refinance 110MW of US solar projects. Citi is the lead agent on the deal; Bank of Tokyo-Mitsubishi UFJ, Key Bank and Mizuho are co-placement agents.
An Indonesian energy company, which operates one of the largest geothermal plants in Indonesia, announced today that it has raised $350m from selling 7 year dollar-denominated bonds at an interest rate of 6.125%. The bond was apparently 11 times oversubscribed! Amazing.
Proceeds will go to developing independent power producer Star Energy's Wayang Windu geothermal plant in West Java, one of the largest geothermal power plants in Indonesia.
The 2013 Environmental Bonds Conference is being held in London on 25 April – and you can get a 25% discount here. The Conference organisers at Environmental Finance Magazine are offering readers of this blog 25% discount on registration fees.
You get a good line-up of blue-chip speakers, including Citi’s Michael Eckhart, Allianz’s Karsten Loeffler, EIB’s Jonathan Taylor & Chris Knowles, KfW’s Jochen Harnisch, Credit Agricole’s Tanguy Claquin and of course me, Sean Kidney.
We’re beginning to see some friendly competition emerging among US States around Green Banks. New York Governor Cuomo a few weeks ago announced the setting up of a new Green Bank.
(Apologies for the double post. This is the correct one)
1. The total size of the global debt securities market is (drum roll): $78 trillion … not the previously reported $100 trillion
If you’re thinking that figure looks odd, you’re right, this is some $20 trillion less than last reported – but it’s just change in counting methodology, not some sort of calamitous drop in the bond market.
Brookfield Renewable Energy last Friday issued that C$450m, 17 year, BBB bond for its 166 MW Comber Wind farm in Essex County, Ontario that we foreshadowed recently. The bond was, according to Brookfield, Canada's "first broadly marketed and rated wind bond".
As reported yesterday, the Export-Import Bank of Korea (Kexim) has issued its first “green” or climate friendly bond - $500m in size, 5 year tenor, coupon 1.75%. This is the first benchmark-sized bond marketed as a green bond outside the multi-lateral development banks. A big step forward and a big contribution from Korea, the standard-bearer of Green Growth Government.
Demand was strong: they had $1.8bn of orders from 100 investors for their $500m; which means, other potential issuers take note, they left some hungry investors out there.
