market-report

A couple of repeat issuances to note; World Bank green bond for CalSTRS - $50m; and OPIC issue two Green Guaranties - $24.4m & $2.1m

Submitted on Tue, 2014-11-25 17:18

Here is a quick summary of two interesting repeat issuances from the last few weeks.
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World Bank issued a USD 50m 2 year callable green bond to meet investor demand from California State Teachers Retirement System (CalSTRS). The coupon is floating at 3-month USD LIBOR + 0.10% per annum. The sole underwriter for the deal was Barclays.

Martha’s Vineyard Land Bank issues green muni bond ($35m, 5-20 years, AA-rated) – it’s green, but not climate: Proceeds go to purchase of properties and land

Submitted on Fri, 2014-11-21 14:03

Martha’s Vineyard Land Bank (MV Land Bank), the Massachusetts-based municipal bank, has issued US$35m of AA-rated green bonds.  The bond has a range of maturities from 5 to 20 years, with semi-annual coupons ranging from 3.25 to 5%. This first green offering from MV Land Bank is callable, and exempt from federal and state tax, as is common for municipal bonds in the US.  RBC Capital Markets was underwriter for the bonds.

New Canadian Climate bond: Northland Power releases a pretty big ABS - CA$232m (US$206m) - backed by solar projects with proceeds for renewables. 18-year tenor, 4.397% coupon, BBB. Securitisation key future area for green bonds.

Submitted on Thu, 2014-11-20 14:07

Canada’s Northland Power issued an asset-backed bond (ABS) last month through a SPV (Northland Power Solar Finance One LP). The amortising bond was a private placement of CA$232m with 18-year tenor.

Austria’s first green bond from power company Verbund AG - EUR 500m($623m), coupon 1.5%, 10yr tenor, BBB+, proceeds to fund Wind (compliant with Climate Bonds Standard) & EE in Hydro

Submitted on Tue, 2014-11-18 18:03

Austrian power company Verbund AG released a EUR 500m ($623m) green bond last week. The use of proceeds bond is rated BBB+ by S&P and has a 10 year tenor. The joint lead managers for the deal were Commerzbank AG, JP Morgan, Raiffeisen Bank International, Societe Generale and UniCredit Bank Austria AG.

Norwegian utility NTE issues NOK750m ($110m) of green bonds in 3 tranches to refinance hydro: 3, 5 & 7 yrs. Green bonds for refinancing key to grow the market. Oversubscribed in 2 hrs!

Submitted on Tue, 2014-11-18 15:48

By Beate Sonerud, Climate Bonds Policy Analyst

Nord-Trøndelag Elektrisitetsverk (NTE), a Norwegian utility, has issued NOK750m (US$110.2m) of corporate green bonds in 3 tranches with varying maturity and floating coupons: