We have over 200 people signed up for our first Paris Climate Bonds seminar tomorrow with CDC Climat! If you can't join us by the Seine (it's going to be a beautiful 20C and sunny!) then you can listen in remotely via http://www.eyedo.com/en/WhiteBoard/Evenement/4002. 14:30-16:30 CEST.
This is a sneak preview of my remarks tomorrow:
Steering Capital towards a Low Carbon Economy
Reuters reports that the US State of Massachusetts will issue $100 million of Green General Obligation Bonds, as part of a $1.115 billion parcel of bonds to be issued on 4 June 2013.
For credit purposes the bonds are standard Massachusetts State Government Bonds. The difference is that the State is guaranteeing to use the proceeds to finance “environmentally beneficial” projects.
Tesla Motors' inaugural bond issue has been, as you'd expect, electrifying (just had to say that). The US electric sports car manufacturer has just issued a 5 year, $600m convertible bond in a fundraising program which has seen it raise approximately $1bn through shares and convertible bonds. Coupon is 1.5-2%; conversion premium is 35%; bookrunners were JPMorgan, Goldman Sachs, Morgan Stanley.
Join us next week for this webinar on
Green Sukuk – why, what, howFinancing renewable energy in the Islamic World
From the Green Sukuk Working Group: Gulf Bond and Sukuk Council / Climate Bonds Initiative / Clean Energy Business Council MENA
The Climate Bonds Initiative | CDC Climat (Group Caisse des Dépôts)Supported by EuroPlace |The Paris Financial Markets Organization
Invite you to a seminar
Financing the energy transition in France: What role for Climate Bonds?Paris | Tuesday 4 June 2013, 14:30 – 18:30
Caisse des Dépôts | 15, quai Anatole France 75007 Paris
The mobilization of private finance will be a key factor in achieving a low-carbon energy transition in France. Bonds will have to be a key part of the mix of capital instruments. What are the next steps?
Programme
Germany’s MBB Clean Energy AG last week raised a 6 year, €72 million ($94.6m), saying it would invest the proceeds in 1,500 MW of existing wind and solar power plants. Coupon was 6.25%. The bond will be listed on the Frankfurt Stock Exchange. Bookrunner was Donner & Reuschel AG.
According to the Wall Street Journal’s MoneyBeat column, Mario Draghi on Thursday said the European Central Bank (ECB) was working to promote a funding market for asset-backed securities, which allow banks to pool together shorter-term debt they have sold – such as car loans, credit cards, and residential mortgages – and sell those pools as a single package to investors.
This is welcome news.
The Climate Bonds Initiative is focused on mobilizing institutional investors, such as pension funds, to help engineer a rapid transition to a low-carbon - and sustainable - economy.
Fiduciary duty is the term used to describe a pension fund trustee's responsibility to act in the best interests of the person whose assets they are in charge of. The boundaries of that responsibility have usually been defined as being limited to stock (and bond) picking decisions; but such an approach can be limiting in the face of systemic threats like the financial crisis - or climate change.
Fund manager Foresight Investment has issued a £60m bond - Senior Secured index-linked notes with a 21 year maturity - with the funds being used to refinance four of the solar parks it has developed in the UK. The solar parks are FIT-accredited with aggregate output of 15.70MW. The bond has been issues under the name Mirabaud Securities LLP; bookrunner is Independent Debt Capital Markets, with the bond to be listed on the London Stock Exchange. Coupon is 2.598%.
French semiconductor manufacturer Soitec has issued a South African Rand denominated bond worth $111m to help finance the construction of a 44MW concentrated photovoltaic (CPV) solar plant in Touwsrivier, South Africa.
