Post Issuance Use of Proceeds – Trends and Best Practice
The report is Climate Bonds Initiative’s first detailed study of current practice around post-issuance reporting of green funding and monitoring of green bond allocation, primarily in the corporate market, in line with initial commitments.
Post-Issuance Use of Proceeds – Trends and Best Practice encompasses data from 146 issuers
-Corporate 43%,
-Municipal 38%,
-Commercial Banks 12%,
-Govt agencies and entities 4%
-ABS 3%
The report analysys 191 green bonds issued up to 1 April 2016 to the value of USD66bn.
The analysis finds that the majority of issuers provided a degree of public information after issuance with 74% of bonds complying (by number) or 88% by value within the dataset.
The report also provides examples of best practice by country and by issuer.
Whilst noting an improving trend in transparency, Post-Issuance-Use of Proceeds – Trends and Best Practice reflects that additional progress still needs to be made for the market to maintain its integrity in areas such as comparability, recommended guidance and failure to report.
To achieve this improvement, core recommendations are set out for both issuers and regulators around:
Comparability
Meeting recommended guidance
Failure to report
Leadership by large issuers
Regulator market guidelines
Common databases and basic reporting templates
Acknowledgments: We would like to thank Berlin Hyp, BlackRock Inc and Luxembourg Green Exchange for their support in this project. The report has been published in partnership with these three organisations and Climate Bonds Initiative acknowledges their generous assistance.