Development Banks
EXIM Bank of India issues inaugural $500m green bond (5yr, 2.75%, BBB-/Baa3) to fund low-carbon transport, solar and wind projects
Development bank issuance
Massive demand for KfW’s third green bond offering, and first ever kanga bond, sees it upsize to A$600m ($456m) and its still oversubscribed! 5.25yrs, AAA, 2.4% coupon
After a blazing entry to the green bond market last summer German development bank KfW continued to lead with a Kanga (Australian dollar denominated) bond to the tune of A$600m ($456m). It’s KfW’s first ever Australian dollar bond.
This week saw the first labelled green bond from the Asian Development Bank (ADB), which marks an important step forward from a leader in the Asian market. Pure-play wind power company Vestas closed its inaugural labelled green offering - important because it opens the door to other pure-play companies that have the potential to issue green. Another green guarantee was issued by OPIC with proceeds funding a wind project in Pakistan.
The green and climate bonds covered in this week’s blog are: Florida’s second green municipal water bond, an unlabelled climate bond for SolarStar in California and an unlabelled climate bond for transmission links for off-shore Wind in the UK. In other market development news; UK’s Labour Party proposes green retail bonds as an elction policy, Swedish insurers SPP will establish a green bond fund and IFC supports the growth of an Indian green bond market.
Big news from the World Bank this week with two green bonds issued: the first is a long 30 year tenor for insurance giant Zurich and the second is the World Bank’s biggest ever green issuance of $600m. Repeat issuance seems to be the theme of the week with another green bond from Swedish property company Vasakronan.
