green-bonds

In Beijing today China’s investment sector talks green finance. Context: China’s new ‘Guidelines for Establishing Green Financial System’, endorsed by President Xi Jinping. Rest-of-World, please learn

I’m in chilly Beijing today.  Thanks to rain, the air quality is now “Good”, down from “Hazardous” when my high-speed train pulled into a moodily smoky station a couple of days ago.

As usual it’s been a round of meetings about green bonds with regulators, our Chinese partners like CCDC and CECEP, and industry associations.  

GB Market Rpt: Water, water everywhere! Cleveland $32.4m, Saint Paul $7.7m, Indiana $115.8m, Columbia Uni $50m, California $411m, Massachusetts Water $682m! US municipal green bonds issuance is dominated by water.

There's been so much going on in the green bond space over the past couple of weeks that we have split the normal market report. Corporates

GB Market Rpt: Alliander €300m ($339.6m, 10yrs); 1st China onshore corporate Concord Wind RMB200m ($31m, 3yrs); Iberdrola €1bn ($1.13bn, 10yrs), Vasakronan SEK550m ($67.6m, 2yrs); Latvenergo €25m ($28.4m, 6yrs)

For this market report edition we are focusing on the recent flurry of Corporate Green Bonds. There has been so much going on in the green bond space over the past couple of weeks that we will be blogging more about the municipal and development bank green bonds - and all those market developments - seperately, so keep an eye out

Corporate green bonds

 

Q1 largest ever for green bonds ($16.5bn issuance); BAML leads the top 5 qtrly underwriters league table but remaining 4 spots taken by Chinese underwriters – showing the importance of China in growing GB market

Quarter 1 of 2016 saw a remarkable take-off of the green bond market with a total issuance reaching $16.5bn, the largest ever-quarterly amount issued! That's almost a $1bn more than our inital tally

This fantastic growth is driven in part by China which accounted for over half of all green issuance in the quarter.

Green Bond Market Report: Four new ‘AAA’ rated benchmark sized green bonds: Kommuninvest inaugural $600m (3yr) NWB Bank $1bn (10yr) Chinese bank SPD RMB 15bn ($2.3bn, 5yr) IFC $700m (10yr); &1st ever green Schuldschein frm Nordex €550m is CB Cert

Banks

Kommunivest’s inaugural green bond upsized to $600m marks the largest Nordic issue yet ($600m, 3yrs, 1.5% S/A, Aaa)

Sweden’s largest municipal lender Kommuninvest leapt into the green bond market for the first time with the largest issuance. The Swedish lender’s inaugural green bond of $600 m has a 3-year tenor, semi-annual coupon of 1.5% and is rated Aaa by Moody’s. Bank of America Merrill Lynch, Crédit Agricole CIB and SEB were lead underwriters for the deal.