> Canada's Brookfield Renewable issued a $176m bond to fund a new 45 MW hydroelectric project in British Columbia. Interest rate is 4.45%, fully amortizing over a term of, yes you read it right, 41 years. The bonds are rated A (low) with a stable trend by DBRS. Scotia Capital was the private placement agent.
Climate Bonds Blog
Posted: Nov 5, 2012
Canada's Brookfield Renewable places 41yr (!) $176m Hydro bond / Another $146m WB Green Bonds into Uridashi market
Posted: Oct 19, 2012
Interesting development over Summer was from South African’s Nedbank, which announced it was going to raise R4bn ($490m) from a green savings bond programme, the proceeds of which will be used to finance renewable energy projects in South Africa. This will be a great test of demand.
We spend a lot of time on mobilizing institutional investors at the Climate Bonds Initiative, but enthusiastic retail investors may prove to be the drivers of change - and they are also members of pension funds, so could be important in pushing institutional investors to better address the huge risks involved in climate change.
SA's Nedbank $490m retail green bonds offer
Posted: Oct 17, 2012
> God I love engineers! I’m beside the River Liffey in Dublin to speak at the International Conference on Ocean Energy. The marine engineering being discussed here is amazing – huge underwater tidal turbines, wave-catchers of all sorts, a cool Norwegian underwater “sail”. Bits of test kit are all over the place, like a giant Mechano game. It breathes innovation. All still pre- or near-commercial stage, so not exactly bonds yet, but definitely hope.
> Catch-up: there were a couple of notably bonds over the summer.
Snippets: God I love engineers / Summer bonds: Acciona’s $300m Mex wind bond & Utah $92m wind bond / Air Liquide bond x6 oversubscribed / WB Green Bond reporting
Posted: Oct 11, 2012
In an interesting development for “thematic” bonds, Air Liquide Finance yesterday issued a 9 year, €500m “SRI (Socially Responsible Investment)” corporate bond. Coupon: 2.125%, rated "A Positive Outlook" by S&P. Manager was the ground-breaking Credit Agricole (Tanguy Claquin of course).
The bond’s SRI label is largely because proceeds are to be used for home health units of the company - perhaps the bond should really be called a “health” bond? However, the bond is fully guaranteed by the company, so for credit purposes it’s just an A rated corporate bond.
Air Liquide issues €500m thematic “SRI” bond
Posted: Sep 20, 2012
It’s sunny in Venice today; I’ve just caught the vaporetto across to the island of San Giorgio Maggiore to a Climate Policy Initiative/World Bank/OECD meeting on “Expanding Green, Low-Emissions Finance”.
Looking across the choppy Grand Canal I’m wondering whether the new flood defenses Venice is building at its lagoon entrance will be enough, given the scary reports on Greenland’s ice cap melt trajectory that have been coming out in past weeks.
Musings from the Venetian Lagoon
Posted: Sep 19, 2012
Yesterday the Nord-Pas de Calais region of France announced its second successful issuance of a socially responsible bond since 2008.
The €80m, 12 year bond was facilitated by Credit Agricole - yes, it's that Tanguy Claquin again. Coupon (basically interest rate) was 3.42%, S&P rating is AA-.
New €80m 12yr French enviro bond 90% over-subscribed - Calais shows the way
Posted: Sep 17, 2012
Sean P Flannery, former CIO, Americas, of State Street Global Advisors (SSgA), has joined the Climate Bonds Advisory Panel.
At SSgA Sean was responsible for over US$2 trillion in global assets under management, across all listed asset classes and in all global geographies. He is now a director IFOK and Meister Consultants.
Climate Bonds news: Sean P Flannery, former CIO, Americas, of SSgA, joins Climate Bonds Advisory panel
Posted: Sep 17, 2012
http://www.ft.com/cms/s/0/24ce91a8-fd97-11e1-8fc3-00144feabdc0.html#axzz26g9VxPAZ
“If you have a choice between two bonds with the same yield, why would you not buy the one that helps to tackle climate change?”
In today's FTFM section.
Financial Times covers Climate Bonds today
Posted: Aug 31, 2012
Nordic Investment Bank this week issued a new 20 year (yes, long dated are selling) SEK 500 million "Environmental Bond", linked to their environmental lending portfolio. It was sold mainly to Scandinavian investors. Lead Managers were SEB (go Christopher Flensborg!) and BoAML. Interest rate 2.75%. For details (including about their ring-fencing) go to http://www.nib.int/capital_markets/environmental_bonds
New $75m NIB Enviro Bond out
Posted: Aug 31, 2012
1. The total size of the global debt securities market: $98.4 trillion
Data compiled by the Bank for International Settlements, http://www.bis.org/statistics/intfinstatsguide.pdf
2. Over two thirds of corporate bonds outstanding are in US dollars
7 useful facts about global bond markets