Case studies under Programmatic Certification

 

Société du Grand Paris (SGP), France

EUR1.75 billion Certified in October 2018

‘SGP’ is the entity that has been established in order to build and deliver the ‘Grand Paris Express’ project by the 2030s. This is an ambitious plan that will extend two existing Paris Metro lines and build four new lines. In total, the plan includes 200kms of new metro and commuter rail lines and 68 new metro and commuter rail stations, compared to the existing 400kms network. One of the main aims of the new network is to provide a lower carbon alternative transport mode for commuters in the regions outside Paris. 
The network will be fully electrically powered and therefore is eligible under the Low Carbon Transport Criteria. It received programmatic Certification in October 2018. The total estimated size of the programmeis worth EUR 35 billion. They issued their first Certified Bond in October 2018.

 

New York Metropolitan Tranportation Authority (MTA)'s USD 313m green bond

In 2016, New York’s Metropolitan Transportation Authority (MTA), was the largest certified climate bond issuer of the year, and was awarded a certificate at the 2016 Climate Bonds Awards ceremony. The bonds’ proceeds paid for infrastructure renewal and upgrades for NYC Transit, LIRR and Metro-North Railroad. Issued in February 2016, the bond was planned to be USD500 million, but due to extreme interest from institutional and individual investors, the MTA upsized to USD782.52m.  

Following closely on the heels of their first climate bond, at the beginning of 2017, the MTA issued another certified green bond for USD313m. With this issuance, the MTA went a step further by becoming one of the first green bond issuers to implement the Programmatic Certification option.

Sustainalytics has verified that from MTA’s 2010-2014 Capital Plan, a multi-billion pool exists of assets and projects that are eligible under the Low carbon transport criteria of the Climate Bonds Standard. 

 

New York State Housing Finance Agency (NY SHFA)

The New York State Housing Finance Agency issued a green bond for nearly USD100m as the first under Programmatic Certification. New York Governor Andrew M. Cuomo announced the bond, which will finance energy efficient residential buildings at the 2016 Sustainable Development Conference.

The bond will be issued under NYS Homes and Community Renewals Housing Finance Agency under its new Green Bond Program, ultimately funding four developments for affordable and supportive housing in New York City and its surrounding counties. 

"Green Bonds are an innovative tool to build cleaner, greener, affordable housing and place New York at the forefront of sustainable development," Governor Cuomo said. "New York leads the nation in pioneering solutions to 21st century challenges, and these Green Bonds will provide hundreds of new housing units to New Yorkers in need, while reducing carbon emissions, mitigating the impact of climate change and creating a more sustainable future for all New Yorkers."

Since the first bond, NY SHFA has used the Programmatic Certification to issue 9 more Certified bonds, totalling USD810m as of October 2018.

 

SNCF Réseau

SNCF Réseau manages France's railway infrastructure, including 35,000km of railway lines and associated works. In October 2016, SNCF Reseau’s launched its inaugural Green Bond. Their first issuance of EUR900m enabled the company to become the first railway infrastructure manager in the world and the first transport company in Europe to issue a Climate Bonds Certified Bond.

Using the Programmatic Certification, in March 2017, SNCF Reseau successfully issued a EUR1000m bond to finance the renovation of the structuring network, the development of new projects and an enhanced strategy to support the protection of biodiversity and other nature resources.

 

National Australia Bank (NAB), Australia

NAB is one of the ‘Big 4’ banks in Australia. As a large bank with diverse loan portfolios, they have received Programmatic Certification for two different Certified Bond Programmes. One is the NAB Residential Mortgage Backed Securities Trust (RMBS), where the Certified Bond refinances residential mortgages linked to buildings which meet the Low Carbon Buildings Criteria. The other is their SDG Green Bond Program, which refinances loans related to the Solar, Wind, Low Carbon Transport, Marine Renewable Energy, Low Carbon Buildings (Commercial) Criteria.
 

 

Westpac, Australia

Westpac is one of the ‘Big 4’ largest banks in Australia. They were one of the first Certified Bond issuers, by issuing a Certified Bond in May 2016. Since then Westpac has issued bonds in the Euro market, the Japanese private placement market, and launched a Green Deposits product. In 2017 Westpac received Programmatic Certification for all their existing bonds and the program of issuances in the future. Westpac has an annual verification process in place to confirm the Certification of the individual bonds and deposits, and the overall program. The projects and assets meet the Wind, Solar, Low Carbon Buildings, and Low Carbon Transport Criteria.
 

 

San Francisco Public Utilities Commission (SFPUC)

SFPUC is the government entity that is responsible for managing the water supplies and distribution in San Francisco County and the region. Since 2016, they have received Programmatic Certification for two bond programmeswhich respectively finance their investments and operations in the Wastewater Investment Programmeand the Drinking Water Investment Programme. Both have received Certification under the Water Infrastructure Criteria.
 

 

Contact Energy, New Zealand

Contact Energy is a leader in geothermal power generation in New Zealand with over 350MW of generation capacity. In recent years, it has developed a Green Borrowing Programmewith a mix of debt instruments worth NZ$1.8bn to support the financing of its facilities. In August 2017, this program received Certification under the Geothermal Energy Criteria. This was treated as a post issuance Certification, so that all of the prior debt instruments in this financing program were also Certified together with any future debt instruments issued to finance those geothermal energy facilities.