Climate Bonds Blog

Posted: May 1, 2010 by Sean Kidney

Hard in the heels of the IFC’s US$200 million Green Bond last month, comes the AAA-rated European Investment Bank (EIB) with a third issue of its “Climate Awareness Bonds”.

Denominated in Australian dollars and South African Rand, yesterday’s issue is for the equivalent of €300 million. They will be sold largely to Japanese retail and institutional investors.

Bond proceeds will be ring-fenced for the EIB’s renewable energy and energy efficiency lending programs. Lead manager is Daiwa Securities.

Posted: Apr 16, 2010 by Sean Kidney

The International Finance Corporation (IFC) today launched a US$200 million AAA Green Bond offering, ring-fenced to fund IFC climate change related programs.

The bond follows the footsteps of its sister institution, the World Bank. The World Bank has raised over $1 billion in Green Bonds in recet years.

Settlement date for the IFC bond is 26 April; they may get to $250 mil by then. SEB are the lead manager - they're becoming quite a green bond specialist.

This issue is really a market test for the IFC. If the issue is over-subscribed expect more later in the year.

Posted: Apr 2, 2010 by Sean Kidney

The London-based Climate Bonds Initiative today announced that Graciela Chichilnisky, Professor of Mathematics and Economics and Columbia University in New York, would be joining their international Advisory Panel.

Prof Chichilnisky was the architect of the Kyoto Protocol carbon market, is author of the recent book "Saving Kyoto", advises several UN organizations and is working with the US Air Force on pioneering a new approach for measuring, anticipating and managing catastrophic risks, sometimes called "Black Swans".

Posted: Mar 7, 2010 by Sean Kidney

Now the Asian Development Bank (ADB) is getting with the "themed" bonds rhythm: they're marketing Water Bonds to finance its work in the AsiaPac water sector. Daiwa Securities is lead manager; bonds will be issued in Australian dollars and South African rand.

While bond finance for water infrastructure is commonly sought in developed countries, it's rare in emerging nations.

Posted: Mar 2, 2010 by Sean Kidney

Two news items of note:1.

Posted: Feb 25, 2010 by Sean Kidney

A day after launching a 600m Swedish Kroner Green Bond, the World Bank has launched another 10 new Green Bonds denominated in different currencies.

The 10 bonds are primarily for the new, open-ended, Nikko World Bank Green Bond fund, previously reported.

Posted: Feb 23, 2010 by Sean Kidney

A few weeks ago we told you about Nikko Asset Management’s new World Bank green bonds fund for Japanese investors. They’ve now created a Luxembourg fund aimed at European and Middle Eastern investors. It will be available in £, US$ and Euro share classes.

The fund - the first of its kind - can invest up to 100% of its portfolio in green bonds issued by the World Bank, with funds ring-fenced for World Bank funded climate change projects such as energy efficiency, renewable energy and reforestation.

Posted: Feb 3, 2010 by Sean Kidney

The International Monetary Fund is planning to launch a $100 billion green fund as part of global efforts to stimulate economic growth and help finance low-carbon projects. Details of the fund and its financing are to be announced in about two weeks time.

Posted: Feb 2, 2010 by Sean Kidney

LSE is today introducing a new bond trading platform for retail bonds intended to "improve transparency and pricing" (the size of the bid-offer spreads which can be very large). The aim is to make corporate bonds more accessible for retail investors, and so to open up a new source of financing for companies and others.

Posted: Jan 28, 2010 by Sean Kidney

What's unusual about this fund is that Nikko AM say they've developed the fund in cooperation with the World Bank, and they only invest in World Bank Green Funds, offered in a variety of currencies.

An interesting niche; they are confident of investor support within Japan. Worth noting that the country has already soaked up a series of World Bank Green Bond offerings.

What about Europe or the US?