Climate Bonds Blog

Posted: Mar 18, 2014

The European Investment Bank has been busy. A fortnight ago they "tapped" (see our recent post for what that means) their 2013 six year Climate Awareness Bond for another EUR250 million. Underwriter was Deutsche Bank.

 

Then last week they tapped their 4 year South African Rand (ZAR) Climate Awareness Bond for another ZAR 250m (EUR 17 million), bringing the total for the bond up to ZAR 1 billion (EUR 67 million). Lead managers were Citi and Morgan Stanley.

EIB taps yet another 6yr EUR250m climate bond + issues 4yr ZAR250m ($70m) + does a 25yr, Y5bn ($50m) Green Samurai. Who says Luxembourg is a sleepy place?
Posted: Mar 17, 2014

Toyota will close mid-next week on what will be the world's first green bond backed by auto loans - electric vehicle and hybrid car loans to be specific. And what a kickstart for that market, at $1.75 billion.

 

According to a report in International Financing Review (IFR), the bond will be in multiple tranches, each at a different ratings level: A2 tranche, A3 and A4 (Moody's ratings).

Wow! Toyota will this week issue a huge $1.75bn, investment grade, multi-tranche green bond, backed bond by electric+hybrid auto loans. It was going to be only $750m but demand was very strong. A new horizon opens?
Posted: Mar 17, 2014

German Index company Solactive last week launched a green bonds index, the first to hit the market. The Index uses the Climate Bonds Initiative's tracking list of green bonds as a base.

To be included in the Index, bonds need to have an amount outstanding of at least US$100 million and a minimum remaining time to maturity of 6 months. Convertible bonds and inflation-linked bonds are excluded. All bonds are weighted according to their market value with a maximum of 5% per bond.

First Green Bonds Index launched by Solactive; opens up opportunity for ETFs and improved access for smaller investors
Posted: Mar 14, 2014

Last week, California's Western Riverside Council of Governments (a consortium of local governments) issued a $103.8 million bond backed by PACE loans (Property Assessed Clean Energy) for work such as weather sealing, insulation upgrades or solar-panel installations.

 

Interest rate was 4.75%. Kroll gave the bond an AA rating.

California Council issues $104m AA bond backed by PACE resi energy efficiency loans
Posted: Mar 13, 2014

Vasakronan is a major property owner in Sweden, working hard to green their portfolio. This is their second green bond; we covered the first last November.

 

The bond was issued in two parts, the first SEK350 million at 2.473% interest, the second SEK650 million at a variable (floating note) rate of 67 basis points above 5 year Swedish Treasury bond rates (mid-swaps).

This is a corporate bond with proceeds earmarked for green assets.

Second green bond of the day: Vasakronan issues SEK1bn ($157m) for green property
Posted: Mar 13, 2014

Credit Agricole, Morgan Stanley and SEB are the bookrunners.

Alert: World Bank is just closing their inaugural AAA Euro Green Bond, 3yrs - expected EUR400m
Posted: Mar 12, 2014

SRI-CONNECT are hosting a "short, sharp" webinar tomorrow, with Bridget Boulle and Sean Kidney, on the need for definitions; analysts' role in this; the opportunity to engage with issuers and arranging banks; and the transition from issuer-backed via asset-linked to asset-backed bond issuance.

Climate Bond events: webinar 15:00 gmt tomorrow with SRI-Connect / London investors workshop, 1 April, with IIGCC / Utrecht roundtable for Dutch investors, 16 April, @RaboBank
Posted: Mar 11, 2014

Lots of activity. For a discussion of what we mean by "labelled", see our review of 2013.









Issuer

currency


Amount


USD figure

European Investment Bank

CHF


350,000,000


387,800,000

Just in case you were wondering ... $3.93bn of "labelled" green bonds issued so far in 2014. More coming - up to $1bn expected next week
Posted: Mar 11, 2014

The African Development Bank (AfDB) last week issued its second Swedish Krona (SEK) Green Bond, for 1 billion Swedish Kronas and a five year term. Their bond last year was in floating rate format; this time it's a fixed rate bond of 1.75% (38.5 basis points above equivalent Swedish Government bonds).

 

Proceeds go to climate-change related project lending in Africa.

African Dev Bank does SEK1bn ($157m) 5yr AAA green bond, its third to date
Posted: Feb 28, 2014

The European Investment Bank (EIB) yesterday issued a new ZAR 300 million (US$28 million), AAA, 4 year Climate Awareness Bond.

 

The interesting thing about this bond is that it's targeted at the broader retail community - sales are to individual customers through distributing banks and institutions, largely in Switzerland, Italy and Germany as far as we know. We often get emails asking about how individuals can buy climate and green bonds; here's a good example. We need more.

EIB issues a ZAR300m ($28m), 4yr climate bond, designed for individual investors in the EU