market-report

Ontario issues long-awaited inaugural green bond; CAD 500m ($448.1m), 1.75%, 4yrs, Aa2e. Mixed portfolio. Nearly 5x oversubscribed! Go Canuks!

Submitted on Mon, 2014-10-06 17:54

Canada’s Province of Ontario has just issued the first CAD-denominated green muni bond, in what they have indicated will be an ongoing program.  The semi-annual coupon is 1.75% with 4 year tenor. Moody’s have rated the bond Aa2e; DBRS AAALe. Underwriters were Bank of America Merrill Lynch, CIBC, HSBC and RBC Capital Markets.

China’s Trina Solar goes for a convertible solar bond: US$100m, 5yr, 4% coupon. It’s a challenging market environment for solar but the bonds keep coming.

Submitted on Thu, 2014-10-02 10:23

China’s Trina Solar is issuing US$100m of convertible bonds with 5-year tenor and 4% annual coupon, with semi-annual payments.

World Bank goes retail with 3 small green bonds for $5m, EUR10m & $30m - all with complex coupon structures. Last one was 3x oversubscribed.

Submitted on Thu, 2014-10-02 09:00

We are generally a proponent of “vanilla bonds”: simple bond structures that can most easily fit into institutional investor portfolios.

The world of retail bonds can be different; in fact it can look like a whole different planet with interest rate complexity seen as a selling point rather than a barrier.

BKK utsteder de første grønne obligasjonene fra en norsk bedrift - NOK 1.1mrd ($171.7mill.), løpetid 7 år og kjøpt opp I løpet av 3 timer! Sterk etterspørsel - forvent flere grønne obligasjoner i det norske markedet

Submitted on Tue, 2014-09-30 15:52

(For you poor non-Norwegian readers, we publish in norsk to celebrate that this is the first corporate green bond as well as largest green bond in Norway, and the first hydro-only green bond in the world.)

Av Beate Sonerud, Climate Bonds Initiative policy analyst