Climate Bonds Blog

Posted: Nov 12, 2012

In April we reported that South Africa's state-owned Industrial Development Corporation (IDC) was issuing 5.2 billion rand ($595m) of green bonds to fund new renewable energy projects. The South African Government Employees’ Pension Fund had announced they were buying 1 billion rand's worth ($115m).

Sth Africa's PIC buys $115m of IDC's $580m green bond
Posted: Nov 7, 2012

Canada’s Next Era Energy recently issued an asset-backed $175m, 19 year solar bond. Rating BBB, interest rate 4.80%. As Bloomberg pointed out, this was a higher rating than Warren Buffett’s MidAmerican Energy Holdings' Topaz solar bond - because there was no construction risk. Sole Bookrunner was Royal Bank of Canada (RBC).

RBC issues Canada’s first solar bond - $175m, 19yr BBB
Posted: Nov 5, 2012

In Barcelona recently I had a chance to listen to Torben Möger Pedersen, mild-mannered CEO of the €16.4bn PensionDanmark fund. PensionDanmark have been investing in wind farms - in a big way - showing the worth of mature wind farms as solid, long-term investments to meet long-term pension liabilities.

Pension fund investments in wind farms laying the ground for Wind ABS
Posted: Nov 5, 2012

> Canada's Brookfield Renewable issued a $176m bond to fund a new 45 MW hydroelectric project in British Columbia. Interest rate is 4.45%, fully amortizing over a term of, yes you read it right, 41 years. The bonds are rated A (low) with a stable trend by DBRS. Scotia Capital was the private placement agent.

Canada's Brookfield Renewable places 41yr (!) $176m Hydro bond / Another $146m WB Green Bonds into Uridashi market
Posted: Oct 19, 2012

Interesting development over Summer was from South African’s Nedbank, which announced it was going to raise R4bn ($490m) from a green savings bond programme, the proceeds of which will be used to finance renewable energy projects in South Africa. This will be a great test of demand.

We spend a lot of time on mobilizing institutional investors at the Climate Bonds Initiative, but enthusiastic retail investors may prove to be the drivers of change - and they are also members of pension funds, so could be important in pushing institutional investors to better address the huge risks involved in climate change.

SA's Nedbank $490m retail green bonds offer
Posted: Oct 17, 2012

> God I love engineers! I’m beside the River Liffey in Dublin to speak at the International Conference on Ocean Energy. The marine engineering being discussed here is amazing – huge underwater tidal turbines, wave-catchers of all sorts, a cool Norwegian underwater “sail”. Bits of test kit are all over the place, like a giant Mechano game. It breathes innovation. All still pre- or near-commercial stage, so not exactly bonds yet, but definitely hope.

> Catch-up: there were a couple of notably bonds over the summer.

Snippets: God I love engineers / Summer bonds: Acciona’s $300m Mex wind bond & Utah $92m wind bond / Air Liquide bond x6 oversubscribed / WB Green Bond reporting
Posted: Oct 11, 2012

In an interesting development for “thematic” bonds, Air Liquide Finance yesterday issued a 9 year, €500m “SRI (Socially Responsible Investment)” corporate bond. Coupon: 2.125%, rated "A Positive Outlook" by S&P. Manager was the ground-breaking Credit Agricole (Tanguy Claquin of course).

The bond’s SRI label is largely because proceeds are to be used for home health units of the company - perhaps the bond should really be called a “health” bond? However, the bond is fully guaranteed by the company, so for credit purposes it’s just an A rated corporate bond.

Air Liquide issues €500m thematic “SRI” bond
Posted: Sep 20, 2012

It’s sunny in Venice today; I’ve just caught the vaporetto across to the island of San Giorgio Maggiore to a Climate Policy Initiative/World Bank/OECD meeting on “Expanding Green, Low-Emissions Finance”.

Looking across the choppy Grand Canal I’m wondering whether the new flood defenses Venice is building at its lagoon entrance will be enough, given the scary reports on Greenland’s ice cap melt trajectory that have been coming out in past weeks.

Musings from the Venetian Lagoon
Posted: Sep 19, 2012

Yesterday the Nord-Pas de Calais region of France announced its second successful issuance of a socially responsible bond since 2008.

The €80m, 12 year bond was facilitated by Credit Agricole - yes, it's that Tanguy Claquin again. Coupon (basically interest rate) was 3.42%, S&P rating is AA-.

New €80m 12yr French enviro bond 90% over-subscribed - Calais shows the way
Posted: Sep 17, 2012

Sean P Flannery, former CIO, Americas, of State Street Global Advisors (SSgA), has joined the Climate Bonds Advisory Panel.

At SSgA Sean was responsible for over US$2 trillion in global assets under management, across all listed asset classes and in all global geographies. He is now a director IFOK and Meister Consultants.

Climate Bonds news: Sean P Flannery, former CIO, Americas, of SSgA, joins Climate Bonds Advisory panel