Interesting development over Summer was from South African’s Nedbank, which announced it was going to raise R4bn ($490m) from a green savings bond programme, the proceeds of which will be used to finance renewable energy projects in South Africa. This will be a great test of demand.
> God I love engineers! I’m beside the River Liffey in Dublin to speak at the International Conference on Ocean Energy. The marine engineering being discussed here is amazing – huge underwater tidal turbines, wave-catchers of all sorts, a cool Norwegian underwater “sail”. Bits of test kit are all over the place, like a giant Mechano game. It breathes innovation. All still pre- or near-commercial stage, so not exactly bonds yet, but definitely hope.
In an interesting development for “thematic” bonds, Air Liquide Finance yesterday issued a 9 year, €500m “SRI (Socially Responsible Investment)” corporate bond. Coupon: 2.125%, rated "A Positive Outlook" by S&P. Manager was the ground-breaking Credit Agricole (Tanguy Claquin of course).
Yesterday the Nord-Pas de Calais region of France announced its second successful issuance of a socially responsible bond since 2008.
The €80m, 12 year bond was facilitated by Credit Agricole - yes, it's that Tanguy Claquin again. Coupon (basically interest rate) was 3.42%, S&P rating is AA-.
Nordic Investment Bank this week issued a new 20 year (yes, long dated are selling) SEK 500 million "Environmental Bond", linked to their environmental lending portfolio. It was sold mainly to Scandinavian investors. Lead Managers were SEB (go Christopher Flensborg!) and BoAML. Interest rate 2.75%. For details (including about their ring-fencing) go to http://www.nib.int/capital_markets/environmental_bonds
