Weekly update: Supra’s continue to build market by providing liquidity + depth; EIB taps further EUR250m ($298m), 1.25%, AAA; World Bank issues INR348.5m ($5.7m) Uridashi green bonds, 4.2%, AAA, 5 yr

Before diving into the latest green bond offerings let’s not forget that green bonds were created because no challenge poses a greater threat to future generations than climate change” (thanks to President Obama for the eloquent statement). Shifting capital to climate investments through green bonds is one way of addressing the challenge.

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

Here is a quick summary of two interesting repeat issuances from the last few weeks.

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.

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

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.

World Bank does a 10yr, AAA $12.06m green retail bond especially for Merrill Lynch Wealth Management clients. Harbinger?

A new green retail bond has been issued by the World Bank in conjunctionMerrill Lynch Wealth Management. The bond has 10 year tenor, coupon of 2.32% for the first 5 years which gradually increases to a maximum of 8.82% and is callable after the first year.