Deep-dive: Green synthetic securitisation deal: Frees USD 2bn of capital for green investments - Crédit Agricole and Mariner Investment Group take the plunge

The green debt market continues to diversify with a new synthetic securitisation deal. Last week, Crédit Agricole CIB and Mariner Investment Group completed a USD 3bn private synthetic risk transfer through a Green Capital Note.


Deep-dive into recent green ABS: Toyota funds EVs & hybrids / WHEEL ABS from Citi & RenewFinancial for home energy efficiency loans / solar ABS from Sunrun

Last month Toyota closed their second green bond for a whopping $1.25bn. Standard auto loans backed the issuance with proceeds to be used for electric and hybrid car loans; that means it’s more like a corporate green bond, where proceeds from a bond backed by existing (non-green) assets are directed green loans still to be made.

Green Shoots of Recovery in the Securitisation Markets?

Across Europe and a number of other regions bank recapitalisation pressures have led to a reduction in business and project lending - and thus reduced renewable energy lending.

This is a problem because the bulk of project finance (95% globally) comes from bank lending.

The development of a market for securitized renewable energy and energy efficiency assets and loans, allowing banks to quickly recycle limited loan capital, is going to be vital to ensuring banks deliver the project finance needed as we “green” energy systems.