Financial News – ‘It's not easy being green’ - Edward Russell-Walling
Article talks about lack of regulations concerning what qualifies as ‘green’ in the context of 9 more banks backing the Green Bond Principles.
Climate Bonds Blog
Posted: May 4, 2014
A bunch of climate bond media stories for you: Financial News, Wall Street Journal, Enviro. Finance, Inst. Investor, etc
Posted: Apr 30, 2014
According to SeeNews, Hong Kong-based Jun Yang Solar Power Investments yesterday issued a HKD 190 million (USD 24.5m/EUR 17.7m) bond. The bond was placed with at least six investors.
Because the company is a "pureplay" solar company, making thin-film PV modules and developing solar projects, we include this in our broad "bonds and climate change" universe.
HK's Jun Yang Solar issues HKD190m ($24.5m) convertible bond to expand PV power
Posted: Apr 22, 2014
The World Bank last week issued its first 'Kangaroo' Green Bond (yes, that is really is the financial markets term!): AUD300m ($280m), 5yrs, AAA. This is the first AUD benchmark green bond. Proceeds are used to fund climate change related projects. Price was 20 basis points over swaps - the same as other World Bank Kangaroo bonds.
World Bank's first 'Kangaroo' green bond hops into Australian market: AUD300m ($280m), 5yrs. UniSuper jumps in as “lead green bond investor”, bringing others in. Now that’s a good idea for other markets! USS in the UK? ABP in Netherlands? CPP in Canada?
Posted: Apr 16, 2014
BankTrack is a global network of civil society groups tracking the operations and investments of commercial banks and "their effect on people and the planet".
This week they published a letter to the Green Bond Principles signatory banks, giving a cautious welcome to the Principles, but saying that the lack of clarity over what projects can be considered "green" risked setting the project up to fail.
Green Bond Principles: BankTrack & NGO group "cautiously welcome", but call for transparency, science-based criteria for 'green' & independent verification
Posted: Apr 16, 2014
The Green Bond Principles were published by 13 banks in January this year to encourage transparency, disclosure, and integrity in the Green Bond market. (We expressed our support for the initiative as a useful step to drive the market forward.)
Now it's 25! A dozen more banks sign on to "Green Bond Principles" + ICMA takes on Secretariat role. Can they make it 100 banks signed on by UN Climate Summit in Sept? Go on, Ban Ki Moon needs some good news.
Posted: Apr 16, 2014
Swedish company Arise Windpower has just announced the successful issuance of a SEK1bn ($167m) 5 year green bond linked to wind farms. Interest rate was set at 3% above STIBOR (the Stockholm Interbank Offered Rate).
Arise indicated that investor interest was 'strong', partly due to the green stamp on the bond.
This is the first senior secured bond issue in Sweden in the wind power sector. DNB Markets was the sole bookrunner. DNV GL also provided a second opinion on the bond. All good.
Arise Windpower issues SEK1.1bn ($167m), 5yr green bond linked to wind farms. Nice.
Posted: Apr 15, 2014
Île-de-France is the regional government that Paris sits within. Yesterday they issued their second green muni bond, which they are calling a Green & Sustainability Bond, to finance an eclectic mix of green investments. The first green bond they did was for EUR350 million; this one is EUR600 million, again for 12 years. Rating is AA/AA+ (stable/stable, S&P/Fitch).
Île-de-France issues EUR600m( $830m), 12yr, AA+ Green Muni. They had so many orders in one hour they upped it from 350m to 600m!
Posted: Apr 11, 2014
A beautifully sunny day in Toronto today; the local weather's looking good for green bonds as well.
Nearly two weeks we blogged that TD Bank had become Canada's second "labelled" green bond issuer, with a CAD500 million, 3 year, fixed interest corporate green bond. Here's the review:
Canada’s first corporate green bond: TD Bank’s 3yr AA- CAD500m (USD454m) bond was 1.5 x oversubscribed. Our take: underlying structure & intent solid but better upfront disclosure needed + third party review.
Posted: Apr 9, 2014
I'm at the Bloomberg New Energy Summit in New York, and we've had green bonds green bonds green bonds on the agenda - that's good news.
But talk today is all about yesterday's bond from Iberdrola - EUR750m, BBB, 8.5 years - and how it was four times oversubscribed! That's right, four times as many orders as they could fill - and they hadn't even bothered with a roadshow.
Whoa! That's what you call a market signal.
Perfecto! Spain's Iberdrola issues 8.5yr EUR750m ($1.04bn), BBB but very tightly priced, green bond tied to their renewable assets; 2nd utility to enter market; 4x oversubscribed. Yes, that's right, 4 times as many buyers as they needed!
Posted: Apr 8, 2014
US company SolarCity has priced a solar bond backed by cash flows from a pool of 6,596 mainly residential solar panel systems and power purchase agreements in California, Arizona, and Colorado.
Expected bond figure is $70.2 million, but the bond doesn't close until Thursday this week. Interest rate is 4.59%. Credit Suisse is structurer and sole bookrunner.
SolarCity on the road with a $70.2m, 8yr, BBB+ rooftop solar leases securitization; closes Thursday