The European Investment Bank issued a SEK500m ($75.9m), 6 year, Climate Awareness Bond last week. Interest rate was 3%. Placement was 40% Nordic, 20% Asian, the rest in Europe. Proceeds from the bonds are used to finance renewable energy and energy efficiency projects, as detailed in annual newsletter they publish. Since 2007, EIB Climate Awareness Bonds have raised over EUR 1.7bn equivalent.
Climate Bonds Blog
Posted: Apr 29, 2013
EIB issues $75.9m climate bond, first of the year
Posted: Apr 21, 2013
Trade Finance magazine reports that the IFC is planning to issue $1bn a year of Green Bonds. After talking with IFC folk in Washington DC last week I think I can say that the resounding success of last month’s first $1bn IFC Green Bond is making them think much more ambitiously than before.
IFC planning to issue $1bn Green Bonds p.a. / Hawaii setting up bond-funded green bank / Germany’s PNE Wind planning a €100m corporate bond
Posted: Apr 16, 2013
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.
Invitations: DNV on 'How Climate Bonds certification works' 2 May 10.30am (free) / Reminder: Env Bonds Conf London 25 April (25% discount)
Posted: Apr 9, 2013
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.
MidAmerican to issue second Topaz bond - $250m BBB 26yr
Posted: Apr 6, 2013
> 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.
Climate bonds in the pipeline: US $220m solar, Philippines $170m geothermal
Posted: Mar 30, 2013
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.
Indonesian 7yr $350m B+ geo-thermal bond is 11x over-subscribed @6.125%
Posted: Mar 26, 2013
Suzlon issues $650m wind bond, credit-enhanced by State Bank of India - first step in growing an Indian corp climate bond mkt?
Posted: Mar 18, 2013
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.
Env Bonds Conf London 25 April - 25% discount / US Military to do Green Securitization / Obama to mandate CC impact assessments across fed govt / France turns off wasteful night lights
Posted: Mar 17, 2013
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.
US States compete on Green Banks, with CA the latest / Penn's warehouse issues $31m energy efficiency bond
Posted: Feb 28, 2013
(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.
9 useful facts about the global bond market