LONDON, 17 July 2014 – The Climate Bonds Initiative today launches its 2014 market sizing report “Bonds and Climate Change: the state of the market in 2014”. The report was commissioned by the HSBC Climate Change Centre of Excellence.
> Download it: A4 version (printable) ... or ... magazine style A3 version (much nicer but hard to print)
The report finds that:
By Beate Sonerud, Climate Bonds analyst
Neo Solar Power Corp, the largest solar cell maker in Taiwan, recently issued a convertible bond of US$120mn.
FinanceAsia reported that it is a 3-year bond, with no coupon or yield, but a 10% conversion premium (NT$39.05; stock price at issuance date NT$35.50). The conversion premium was somewhat low, as guidance indicated 10-15%. Proceeds of the bond will be used to buy solar sell raw materials such as silicon wafers.
We knew it was coming, but the size is a surprise. Go Germany!
German’s development bank, KfW (Kredit für Wiederaufbau) has just issued its inaugural Green Bond, at a whopper EUR 1.5 billion (£2.03 billion). If you want make a splash, that’s the way to do it.
Interest rate is 0.375%; yes, that is very very low, like all AAA German government bonds ... this really is the time to finance a rebuild of the world's infrastructure as green!
Zurich Insurance, one of the world’s largest insurance companies, announced yesterday saying it was “doubling its commitment to green bonds”, up to $2 billion.
Last November it gave a mandate to BlackRock to invest up to $1 billion in US denominated green bonds. The second billion will be invested in green bonds denominated in Euros, Sterling and Swiss Francs, reflecting the extent to which European green bond issuance has dominated the market over the past nine months.
London: Thursday 17 July 2014, 4-6pm; kindly hosted by Shearman & Sterling, 9 Appold St, London EC2A 2AP
Frankfurt: Monday 21 July 2014, 12:30-2pm; kindly hosted by Allianz Global Investors,Bockenheimer Landstraße 42-44 Frankfurt
RSVP: info@climatebonds.net
The report, commissioned by HSBC, is the only one to analyse and estimate the size of the wider climate bonds universe which goes beyond the much-publicised ‘labelled’ green bond market and includes all bonds that finance climate change solutions.
We are leaking some key figures before the launch and here is a taste:
District of Columbia Water have just announced the close of the first 100 year maturity ‘green century bond’ to finance water projects. Yes, you read that right, 100 years!
A few days ago I was at China’s annual EcoForum conference, far away in the South Western city of Guyiang, where tower blocks are sprouting like mushrooms across the rolling hills. I was a speaker at a Green Finance Roundtable, alongside Ma Jun, the newish chief economist at the People’s Bank of China - what a star he is! - as well as Mark Halle of IISD, Huang Jianhui, VP of Finance Research at the China Development Bank, and others.
The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organization committed to assessing the sustainability performance of real estate portfolios (public, private and direct) around the globe.
The published BRT criteria proposed by the Low Carbon Transport Technical Working Group will end its 30 day period of public consultation Monday 14th of July – so hurry and send us your feedback in the comments box below or at standards@climatebonds.net!
Lots of coverage this month. We've divided stories into six topics: Green Property Criteria, Calls for Standards and Clarity, Market Analysis and Market Growth.
Green Property Criteria
Coverage following the opening of the Public Consultation for Green Property Eligibility Criteria under the Climate Bonds Standard.
