Climate Bonds Blog

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.

(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.

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.