Two new corporate climate-related bonds were issued this week.
The first, by Hong Kong-listed polysilicon producer Gold Poly, was a $50m convertible bond to finance the solar business of its project acquisition subsidiary China Solar Power Group. The bond is a 3 year bond with a 5% coupon.
The Green Muni GO crosses the Atlantic, from Massachusetts to Sweden
On Friday Sweden's Gothenburg became the first Nordic city to enter the climate bonds space, closing a SEK500m ($77m), 6 year green bond to fund public transport, water management, energy and waste management projects. The bond is part of a potential SEK 2 billion green bond programme for such projects in Gothenburg. The bond carries Gothenburg’s AA+ and Aaa ratings from S&P and Moody’s.
Media release
The Climate Bonds Initiative today released further data from their recent report ‘Bonds & Climate Change: the state of the market in 2013’, showing which lead managers are driving growth in this market.
"The report shows that there's a large amount of issuance out there in the climate bonds space, but the real game is with the underwriters. We continue to see very strong demand, so a step-up is needed in origination" said Sean Kidney, CEO of the Climate Bonds Initiative.
Yesterday the Canadian supplement to the Bonds and Climate Change report was launched by Sean Kidney with a speech at the Economic Club of Canada. The supplement is published in partnership with Sustainable Prosperity
Report Highlights:
Germany's PNE Wind AG has closed a €100m ($134m) 8% corporate bond with a final private placement with institutional investors of €33.7m.
PNE Wind will use the proceeds to expand its activities in offshore wind farm projects and to strengthen its portfolio of national and international onshore projects, especially the 189MW of wind farms they have under development in Germany.
1. That EBRD AAA, 5 year "environmental sustainability" bond I blogged yesterday is out; proceeds go to climate related investments. See the EBRD announcement at http://goo.gl/8HwOBH. And check out their FAQ. Coupon is 1.625%. There were 14 buyers: 51% US, 31% European, 18% Asian. The sector allocation was: 64% to pension funds, 18% to central banks, 12% asset managers, 4% state-related investors, and less than 1% to bank treasuries and foundations.
The European Bank of Reconstruction and Development (EBRD) is, according to a friendly source, planning a new $250 million, 4.5 year bond under their "Environmental Sustainability" bonds program. SEB and Morgan Stanley are currently testing investor demand on behalf of the bank.
Please join us in Boston on Monday September 23 for an intimate meeting about Bonds and Climate Change: the state of the market in 2013, 4-6pm. Please circulate this invite!
Speakers: Sean Kidney, Climate Bonds Initiative; Sean Flannery, Meister Consulting and former CIO SSgA Americas; Cheryl Smith, Trillium Investments.
The event will include a presentation on the recent HSBC / Climate Bonds Initiative report Bonds and Climate Change: the state of the market in 2013, plus a discussion about opportunities and key issues for investors and issuers interested in growing this market.
Report findings:
This week the EIB announced it is tapping its Climate Awareness Bond for a further EUR250m in an announcement that makes takes the bond up to at least EUR900m. This is the first time the EIB has tapped the 1.375% November 2019 bond.
Please join us in New York on Thurday September 26 for the US launch of the report Bonds and Climate Change: the state of the market in 2013, 12:30pm
Speakers include: Michael Eckhart (Global Head of Environment at Citi), Suzanne Buchta (Managing Director of DCM at Bank of America Merrill Lynch), Curtis Ravenel (Global Head of Sustainability, Bloomberg) and Sean Kidney (Climate Bonds Initiative)
This event is kindly hosted by Bloomberg, a light lunch will be provided.
