Climate Bonds Blog

Posted: Jul 8, 2011 by Sean Kidney

So you have some context for the news we post about climate and green bonds, here are some amazing facts about the bond market.

1. Global bonds outstanding in 2010 = $95 trillion. That's a big market. Global equity market capitalization in 2010 = $55 trillion

2. The bond market equals 130% of global GDP, up from only 80% 10 years ago. Equities used to be the bigger of the two, but the great financial crash has seen those positions reversed.

(All facts are courtesy of CityUK's new report on the bond market. They're a great source of data!)

Posted: Jul 5, 2011 by Sean Kidney

Goal to Assure Integrity of Green Claims for Investors, Governments

Australia’s Investor Group on Climate Change (IGCC), representing institutional investors, with total funds under management of approximately $600 billion, today announced that it is joining the International Climate Bond Standards Board. The Standards Board is supervising a program to provide investors and governments an easy way to assess the integrity of environmental claims for green bonds.

Posted: Jun 13, 2011 by Sean Kidney

1. Climate Bonds Standard text delayed until July.

We're running late.  We had planned to release the first version of the new Climate Bonds Standard text in May, after addressing issues raised in our public consultation phase. But we're still addressing comments on areas such as balance sheet reporting requirements for corporate Climate Bonds, on referencing - or not - other governance or environmental standards, and on the nature of sanctions for non-compliance. The release is now scheduled for the early to mid July. Thank you for your patience.

2. We welcome 3 new members of the Climate Bonds Advisory Panel from Turkey, NZ and Canada:

Posted: Jun 13, 2011 by Sean Kidney

1. BofA Merrill Lynch announced this week that it would offer World Bank (WB) green bonds to its wealth management clients.  The model is reminiscent of Nikko AM's World Bank Green Bond offerings for Japanese and EU retail buyers. By far the largest slice of retail interest in green bonds has been Japan, where we think total green-themed "Uridashi" outstanding will hit the $1 billion mark within the year. The ten year WB bonds sold through BofA ML will pay a 3.5 percent coupon for the first year that switches to a floating three-month USD-Libor based coupon after one year.

Posted: Jun 8, 2011 by Sean Kidney

A bill passed by the Connecticut General Assembly yesterday reconstitutes the State’s existing Clean Energy Fund to form the nation’s first full-scale “Green Bank”. Congratulations to the Coalition for Green Capital and others who've been pushing for this in the US.

 

Story at: http://us2.campaign-archive1.com/?u=445b6e705bfc895d1cec1626f&id=bce2705...

Posted: Jun 6, 2011 by Sean Kidney

Goal to Assure Integrity of Green Claims for Investors, Governments

SACRAMENTO & LONDON – California State Treasurer Bill Lockyer today announced he has joined the Climate Bond Standards Board, which is supervising a program to provide investors and governments an easy way to assess the integrity of environmental claims for green bonds.

Posted: May 31, 2011 by Sean Kidney

According to a story in Environmental Finance, Wind Prospect Group, a global wind developer, has launched a corporate retail "Green Energy Bond" in the UK market with the aim of raising £10 million ($16 million). The 4 year bond has a similar structure to the ‘ecobond’ issued by Ecotricity last December. More at http://www.environmental-finance.com/news/view/1737

Posted: May 22, 2011 by Sean Kidney

Following in the footsteps of other multi-national development banks like the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, the IFC have decided to try Japanese retail investors. They've issued $135 million of green bonds, in four tranches, with the last three tranches out 17 May.

Will the appetite of Japanese retail investors for green bonds ever be sated?

Posted: May 22, 2011 by Sean Kidney

The European Bank for Reconstruction and Development (EBRD) has launched its third environmental sustainability bond, bringing its total issuance since December 2010 to €29 million ($41.4 million). As with previous bonds, they're aimed at the Japanese retail market.

The bond proceeds are “specifically earmarked to support a portfolio of ‘green’ projects".  Apparently a fourth green bond will be launched in the "near future".

See the full story at Environmental Finance.