By Beate Sonerud, Climate Bonds Initiative policy analyst.
According to a released agenda, the Coaltrans world coal conference in October is planning to discuss: “Green bonds and the coal industry – A new frontier?". We could free up some time on their agenda right now by providing a simple answer: No, it is not.
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.
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.
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.
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.
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:
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.
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.
A new green retail bond has been issued by the World Bank in conjunctionMerrill 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.
