Transparency and standards were at the top of the agenda this week with Ceres INCR (a Climate Bonds Standard Board member) issuing a statement outlining investor expectations of green bonds, supported by 26 large investors.
The major story this week is the huge high-yield green bond from the yieldco TerraForm Power Operating; seeing more high-yield bonds is a sign that the green bond market is continuing to mature. In addition to TerraForm, more green bonds from repeat issuers OPIC, World Bank, IFC and Credit Agricole have been announced and will be closing in the coming weeks. For today, let’s dig deeper into the latest green high-yield offering.
Before diving into the latest green bond offerings let’s not forget that green bonds were created because “no challenge poses a greater threat to future generations than climate change” (thanks to President Obama for the eloquent statement). Shifting capital to climate investments through green bonds is one way of addressing the challenge.
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..... Supranational green bonds
Huge retail demand for World Bank’s latest offering increases size from $15m to $91m in 3 days, 7 yr tenor AAA