Market Blog #37 - 20/12/19: New Deals from Colombia, France, Finland, Russia: KFW,
Kommuninvest & CAT mark biggest deals: Annual issuance inches past $230bn
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Indonesia GIIO, Update Report
The Green Infrastructure Investment Opportunities Indonesia, Update Report builds on the inaugural GreenInfrastructure Investment Opportunities, Indonesia report released in May 2018. It provides updated content
to help meet the growing demand for green investment opportunities, including green bonds, as well as tosupport the country’s transition to a low-carbon economy.

Climate Bonds has released Version 3.0 of the international Climate Bonds Standard. V3.0 incorporates major
upgrades to the existing umbrella of guidance and requirements for Climate Bonds Certification to meetmarket demand for enhanced reporting, transparency and harmonisation around green definitions.
Over $100bn of green investment has been Certified by Climate Bonds. Read the full story and Sean Kidney’scomments in our special blog post.

Alongside the Version 3.0 of the Standard, Climate Bonds also launched new
Criteria for green debt instruments in the Waste Management sector expanding thesuite of industry sectors available for Certification. The launch marks a major
turning point in best practice for low carbon and climate resilient investment in
waste management assets and projects. Full statement and links are here.

Green bond deals across the globe: 1 Jan – 13 Dec 20192019 issuance as of 13th December reached USD235.7bn, bringing the total global issuance to USD753bn. So far December
saw 6 new issuers, making up 37% of total recorded volume for the month up to 13th December. Of 19 issuers in total, 8
were non-financial corporates and 4 financial corporates. Italian Bank Intesa Sanpaolo returned to the market with its
second green bond. The EUR750m (USD831m) deal will finance circular economy initiatives across several sectors, adding
to the small group of European financial institutions – including Dutch peers ING and ABN AMRO and Finland’s OP - toraise funds for projects in this emerging theme.

Monthly snapshot: November
Overall issuance in November 2019 amounted to USD15.5bn, down from USD30bn in November 2018 and equating to adecrease of 48% year on year. Volume also saw a drop compared to October 2019 when USD26.4bn of green bonds were
issued. USD15.5bn is the second lowest monthly figure in 2019 after August. As of 30th November, 2019 issuance hadreached a total of USD229.8bn.

November issuance came mainly from developed markets (DM), which accounted for 87% (USD13.5bn) of the overallmonthly figure with instruments from 14 different countries. Green bonds from the USA, Germany and Sweden made up
most of the volume. Emerging markets (EM) totalled 5% of the overall volume with contributions from 4 countries. China
and Ukraine took the lead in this category with around USD359m each.
The reason for the sharp decrease in monthly volume compared to last year is a lag in Chinese issuance. In November
2018, Chinese entities issued green bonds worth USD12.8bn making up 43% of the overall volume, boosting EM issuance
to USD13.3bn. This was rooted in two major deals from the Industrial Bank of China with CNY30bn (USD3.4bn) each.

Looking at issuer types for November 2019, we can see an almost equal distribution (ranging from local governmentswith USD2.1bn to financial and non-financial corporates with USD3.5bn). There was no activity from sovereigns or green
loan issuers in either year. China’s Industrial Bank issuance explains the difference in the share of financial corporates
between 2018 and 2019.

Around one third of the funds in November 2019 went towards Energy (USD4.9bn) and Building projects (USD4.4bn) with
32% and 28% shares of total allocations, respectively. Transport and Water accounted for USD2bn and USD2.3bn. Waste,
Land Use and ICT made up the rest of the month’s volume.
The largest deals came from KfW, Germany, with EUR1bn (USD1.1bn), Kommuninvest, Sweden, with USD1bn andDevelopment Bank of Latin America (CAF), Supranational, with EUR750m (USD830m). All of them financed multiple
project categories.
Smaller deals came from Shizen Energy, Japan, (JPY300m/USD3m), Center-invest Bank, Russia, (RUB250m/USD4m) and
Grenergy Renovables (EUR22m/USD24m). All three issuers directed at least part of the funds to renewable energy
projects.

Overall, 67% of green bonds in November 2019 came from repeat issuers.
> The full list of new and repeat issuers here.
> Click on the issuer name to access the new issue deal sheet in the online bond library.

New issuers 1 November to 13 December (and issuers not previously included)
Public sector
Patrimonio Autónomo Titularización TMAS-1 (FDN), (COP131.5bn/USD41m), Colombia, had its inaugural issuance with asustainability bond in August 2019. It is the first of its kind from Colombia and the first labelled bond from a Colombian
development bank in 2019. As per the SPO from Sustainalytics, the proceeds will be used by the concessionaires topurchase compressed natural gas buses to operate on four “corridors” of TransMilenio’s BRT system. The vehicles will becompliant with EURO VI emissions standards.
Annual allocation reporting will be provided, including the average value of financing provided to each of the four
acquisition concessionaires. The framework also specifies key environmental and social impact indicators for annual
reporting, including the number of buses purchased, a measure of local air quality and the number of passengers fromdisadvantaged groups using the four BRT corridors.
Climate Bonds view: The Latin American region is in serious need of investment in low-carbon infrastructure, particularly in
low-carbon mass transport. As highlighted in our recent LAC State of the Market report, this sustainable bond issuancecomplements other similar investments made in Colombian cities this year, which include a fleet of 125 electric buses in Caliand new 64 electric buses in Medellín.

More issuance in the public sector:• Dormitory Authority of the State of New York (USD73m), USA, 30.6Y original term, no third-party review.
• City of Santa Cruz (USD21m), USA, 29.1Y original term, no third-party review.

Financial corporates
CNP Assurances (EUR750m/USD826m), France, came to market with a 30.7-year green bond. The issuance, which is only
the second green bond from an insurance company globally, received an SPO from Vigeo EIRIS. The framework covers a
range of eligible project categories, including green buildings, sustainable forestry, and green infrastructure. All categories
contribute to at least one of three main environmental objectives: climate change mitigation, biodiversity protection andpollution prevention.
Allocation and impact reporting will be published on an annual basis until the bond matures. For the allocation side thisincludes a description of eligible assets, amounts allocated to each category, a financing-refinancing split (and the issuer’s
share of total project financing), and unallocated proceeds. The impact report will contain metrics including avoided CO2
emissions and an estimated amount of CO2 sequestrated.
Climate Bonds view: CNP Assurance is the first French insurance company, and only the second ever globally, to join thegreen bond market. The insurance industry has huge potential to combat climate change, both through the core businessof insurance provision as well as the assets that insurance companies hold. This is the first insurer green bond that covers
multiple eligible categories and scale approaching USD1bn. Well done! The green bond in conjunction with CNP’s overallsustainability strategy shows a strong commitment to green business practices.
More deals issued by financial corporates:• Daiwa House Industry (JPY6bn/USD55m), Japan, 10Y original term, SPO provided by Sustainalytics.
• Gunma Bank (JPY10bn/USD92m), Japan, 10Y original term, SPO provided by Sustainalytics.
• Welltower (USD500m), USA, 7.2Y original term, SPO provided by Sustainalytics.

Non-financial corporates
Citycon (EUR350m/USD388m), Finland, became a new green bond market entrant with a senior unsecured perpetualbond benefiting from a CICERO Second Party Opinion. The bond’s proceeds can be allocated to several project categories
aimed at improving the environmental performance and climate mitigation credentials of buildings, broadly classified
under green buildings, energy efficiency, renewable energy and waste management. Each category comes with its own setof specific eligibility criteria, such as certification levels or energy performance standards.
Citycon has committed to regular reporting for as long as the company has green financing instruments outstanding. The
annual report will be published on Citycon’s website and cover use of proceeds and impact indicators.
Climate Bonds view: Citycon’s green bond framework includes a good level of detail and ambition with regards to use ofproceeds as well as impact. Citycon has also specified the types of instruments it can issue under its Green Financing
Framework, including labelled green bonds, commercial paper, loans, hybrid bonds or private placements.
The company has provided an estimate of its total eligible asset pool (EUR2.7bn), helpful for understanding the scale ofpotential future green issuance. It has also contextualised the financing with a net neutrality goal by 2030, which speaks tobroader efforts in transitioning from brown to green. We look forward to seeing more of such positive ambition in themarket along with accompanying strategies.
More deals issued by non-financial corporates:• Ceetrus (EUR300m/USD330m), France, 7Y original term, SPO provided by Vigeo Eiris.
• Clearway Energy Operating LLC (USD600m), USA, 8.3Y original term, SPO provided by Sustainalytics.
• Ecosolutions (USD3.5m), Costa Rica, 12Y original term, no third-party review.
• Norske Tog As (NOK1.3bn/USD143m), Norway, 10Y original term, SPO provided by CICERO.
• Seibu Holdings (JPY10bn/USD92m), Japan, 10Y original term, no third-party review.
• Shimizu Corporation (JPY10bn/USD92m), Japan, 5Y original term, assigned GA1 rating by R&I.
• Shizen Energy Inc. (JPY300m/USD3m), Japan, 3Y original term, assigned Green1 rating by JCRA.
Visit our Bond Library for more details on November and December deals.

Repeat issuers 1 November – 13 December
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AC Energy Finance Ltd (AC Energy): USD400m
AEON REIT Investment Corporation: JPY1.2bn/USD11m
Activia Properties: JPY4bn/USD36.9m
Akuo Energy: EUR45m/USD49.8m
CAF (Corporacion Andina de Fomento): EUR750m/USD830m
Canton of Geneva: CHF660m/USD660.9m
City of Gothenburg: SEK2bn/USD208.1m
City of Minneapolis: USD114.4m
City of Portland: USD58.5m
Duke Energy: USD700m
EIB (European Investment Bank): EUR150m/USD166.1m
FlexiGroup: AUD102.8m/USD69.7m - Certified Climate Bond
Fondo Especial para Financiamientos Agropecuarios (FEFA): MXN2.5bn/USD129m - Certified Climate BondGLP J-REIT: JPY5bn/USD45.8m
Hyundai Capital Services: KRW130bn/USD109.6m
Intesa Sanpaolo: EUR750m/USD830.9m
JRTT (Japan Railway Construction, Transport and Technology Agency): JPY20bn/USD183m
KBN (Kommunalbanken Norway): SEK1bn/USD104.6m
KommuneKredit: EUR500m/USD553.8m
Kommuninvest: USD1bn
Kungsleden AB: SEK200m/USD21.1m
Landshypotek Bank: SEK3bn/USD311.2m
NorgesGruppen: NOK500m/USD54.8m
Orsted: USD1.1bn (2 bonds – TWD/EUR)
PKO Bank: PLN250m/USD63.8m
Province of Ontario: CAD750m/USD563.9m
Renewable Japan: JPY3.1bn/USD28.2m
Stockton Public Financing Authority: USD54.8m
Vasakronan: USD409.1m (5 bonds – various currencies)
Zhuhai Huafa Comprehensive Development: CNY500m/USD70.9m
Wuhan Metro Group Co.,Ltd: CNY1bn/USD108m

Repeat issuers: January – October 2019 (not previously included)
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ADB (Asian Development Bank): GBP250m/USD321m - October 2019
EUROFIMA: EUR500m/USD548.6m - October 2019
KBN (Kommunalbanken Norway): SEK2bn/USD206.9m - August2019
Kommuninvest: SEK3bn/USD309.5m - October 2019
NedBank: ZAR1bn/USD68.2m - October 2019
Orebro Kommun: SEK500m/USD50.4m - October 2019
Vasakronan: EUR30m/USD33.3m - October 2019
Fannie Mae: USD3.4bn - October 2019

Pending and excluded bonds
We only include bonds with at least 95% proceeds dedicated to green projects that are aligned with the Climate Bonds
Taxonomy in our green bond database. Although we support the Sustainable Development Goals (SDGs) overall and see
many links between green bond finance and specific SDGs, in particular SDGs 6, 7, 9, 11, 13, 14 and 15, the proportion ofproceeds allocated to social goals should be no more than 5% for inclusion in our database.

Issuer Name

Amount issued

Issue dateReason for exclusion/ pending

LKAB

09/12/2019
09/12/2019
05/12/2019

Excluded (Not aligned)

World Bank (IBRD)SEK550m/USD57.9m
SEK550m/USD57.9m
CAD66m/USD49.8m

Laiwu Minsheng Industrial Co.,Ltd.

CNY500m/USD71.1m

29/11/2019

Excluded (Working capital)

National Housing Finance andInvestment Corporation

AUD315m/USD213.6m
AUD315m/USD215m
AUD315m/USD223.5m
USD500m

27/11/2019
18/11/2019
26/03/2019
21/11/2019

Excluded (Sustainability/Social bond)

EUR750m/USD834.2m
EUR750m/USD834.2m
TBC

24/10/2019
24/10/2019
28/11/2019

Excluded (Unlabelled)

TBC

26/11/2019

Excluded (Not aligned)

YANCHENG TRAFFIC HOLDINGGROUP Co.,Ltd
Zhejiang Deqing Transportation
Investment And Construction Co.,LtdANZ Bank

TBC

25/11/2019

Excluded (Working capital)

CNY250m/USD35.6m

14/11/2019

Excluded (Working capital)

EUR1bn/USD1.1bn

21/11/2019

Excluded (Sustainability/Social bond)Treasury Corp New South Wales(TCorp)
BNG Bank NV

AUD1.8bn/USD1.2bn

21/11/2019

Excluded (Sustainability/Social bond)

EUR750m/USD830.6m

20/11/2019

Excluded (Sustainability/Social bond)Ferde

13/11/2019

Excluded (Not aligned)

26/11/2019

Excluded (Sustainability/Social bond)Yorkshire Water

NOK800m/USD87.4m
NOK200m/USD21.9m
NOK400m/USD43.7m
EUR1bn/USD1.1bn
EUR1.5bn/USD1.7bn
GBP300m/USD386.3m

26/11/2019

Excluded (Sustainability/Social bond)Shandong Hi-Speed Group Co.,Ltd

CNY1bn/USD140.5m

12/09/2019

Excluded (Not aligned)

FCC Servicios Medio Ambiente
Holding (FCCMA)
Credit Agricole CIB

EUR600m/USD664.7m
EUR500m/USD553.9m
EUR100m/USD110.2m

04/12/2019

Excluded (Not aligned)

27/11/2019

Excluded (Not aligned)

Taiwan Power

TWD5.9bn/USD193.4m

16/12/2019

Pending (Waiting for more info)

OCBC

AUD500m/USD341.9m

05/12/2019

Pending (Waiting for more info)

Ivanhoé Cambridge

CAD300m/USD227.7m

13/12/2019

Pending (Waiting for more info)

CPPIB Capital

USD500m

04/12/2019

Pending (Waiting for more info)

Swedavia

SEK1bn/USD105.8m

12/12/2019

Pending (Waiting for more info)

Neo Energy

EUR10m/USD1.1m

06/12/2019

Pending (Waiting for more info)

BPCE

EUR500m/USD52.4m

04/12/2019

Pending (Waiting for more info)

Islamic Development Bank

USD500m

27/11/2019

Pending (Waiting for more info)

Guizhou Water Investment Group
Co., Ltd.
Guangxi Beibu Gulf Bank Co., Ltd.

CNY3.2bn/USD454.8m

27/11/2019

Pending (Waiting for more info)

CNY1bn/USD142.2m

29/11/2019

Pending (Waiting for more info)

Nidec Corporation

JPY20bn/USD183m
JPY30bn/USD274.5m
JPY50bn/USD457.5m

28/11/2019
28/11/2019
28/11/2019

Pending (Waiting for more info)

California Health Facilities Financing
Authority
E.ON SEChengdu Xingrong Environment Co.,Ltd.
Rongsheng Petrochemical Co., Ltd.

NORTH-RHINE WESTPHALIA

Excluded (Sustainability/Social bond)Excluded (Sustainability/Social bond)Excluded (Working capital)

Massachusetts Housing FinanceAgency Housing
Ecosolutions

USD108.06m

12/12/2019

Pending (Waiting for more info)

USD3.5m

01/08/2019

Pending (Waiting for more info)

Credit Agricole CIB

EUR3bn/USD3.3bn

21/11/2019

Pending (Waiting for more info)

AfDB (African Development Bank)

SEK750m/USD78m

04/11/2019

Pending (Waiting for more info)

Mori Building

JPY15bn/USD137.7m

14/11/2019

Pending (Waiting for more info)

Green bonds in the market
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Sagax AB - closed 16 December
Welltower - closed 16 December
Fana Sparebank Boligkreditt - closed 18 December
New York State Housing Finance Agency - closed 18 December
California Infrastructure and Economic Development Bank (CalSTRS) - closed 19 December
Nexity – closing 20 December
The Metropolitan Government of Lynchburg, Moore County – closing 20 December
Public Utilities Commission of The City and County of San Francisco - closing 9 January

Investing news
This week, the European Council and the European Parliament reached agreement on the Sustainable Finance Taxonomy
Regulation. A world first, it introduces a comprehensive “green list”: a system for classifying environmentally sustainableeconomic activities based on technical criteria. It also stipulates reporting and disclosure requirements.
Other European institutions also continue to be active: New chair of the European Central Bank (ECB) Christine Lagarde ispushing for a key role of climate change on the Bank’s agenda. Elsewhere, the European Banking Authority (EBA)
published an action plan on sustainable finance.
Central Banks are making green moves: The Bank of England is beginning its first climate stress tests in 2021 and inviting
feedback from the public, whilst Danmarks Nationalbank is working with the Danish Ministry of Finance on a new model
for sovereign green bonds that enables smaller issuance sizes without comprising on liquidity. The Swiss Central Bank may
have to divest from fossil fuels as lawmakers are incorporating fighting climate change as a key policy objective.
China-led Asian Infrastructure Investment Bank (AIIB) is in the process of launching an investment framework to mobilise
capital for green infrastructure projects to help nations in the region meet their Paris Agreement goals.
The Zimbabwe Stock Exchange (ZSE) has started working on guidelines for green and social bonds in order to provide
investors in Zimbabwe with a broader spectrum of instruments.
The Islamic Development Bank (IsDB) has teamed up with Japan’s Government Pension Investment Fund (GPIF) to foster
further development of the Sustainable and Green Sukuk markets.
Forbes highlights an emerging structure in the impact investing space: Société Générale issued a credit linked note where
the bank gets rewarded with lower credit protection rates if the freed-up capital goes to green lending.
Repsol became the first oil and gas company globally to commit to net zero carbon emissions. A large portion of the
remuneration of the firm’s senior management will be linked to the target.

Green bond gossip
Italy is likely to enter the sovereign green bond market in the second half of 2020. The country plans to financeenvironmentally friendly projects with around EUR4bn (USD4.5bn) between 2020 and 2023.

The government of Germany has solidified its intent to join the growing group of sovereign green bond issuers with thefirst Green Bund. The multi-billion-euro deal will hit the market in the second half of 2020.
Indian power generation operator NTPC will likely issue a green bond in order to acquire the government's stake in hydropower generators THDC India Ltd and North Eastern Electric Power Corporation Ltd.
According to the Bangkok Post, the Thai market will see increased bond issuance in the ESG space next year. It reportsthat over 10 firms will issue bonds financing sustainability-related projects in 2020.
Nasdaq has launched a Nasdaq Sustainability Bond Network (NSBN) improve transparency in the market for green, socialand sustainable bonds. We are very pleased to be represented on the Advisory Board.

Readings & reports
In a new paper, Danmarks Nationalbank acknowledges the risks that climate change poses to financial stability andexplores the financial sector’s potential of contributing to the transition to a green economy.
The UN Environment Programme published the Emissions Gap Report 2019, which presents the latest data on the
expected shortfall in 2030 on the targets of limiting temperature rise to 1.5°C or 2°C in line with the Paris Agreement.
AXA Investment Managers proposes a European Climate Emergency Fund, similar in structure to the European Stability
Mechanism. They point out advantages, including long-risk and low-cost funding, as well as the differences, such as frontloading issuance.
SolAbility produced another edition of the Global Sustainable Competitiveness Index. The report measures thecompetitiveness of countries with an index comprised of five sub-indices: Natural Capital, Resource Efficiency & Intensity,
Intellectual Capital, Governance Efficiency, and Social Cohesion.
In a guest blog post for the International Institute for Environment and Development, Pernille Holtedahl illustrates therole that green bonds can play in achieving sustainable development, and argues that the function of these instruments ispartly misunderstood in the market.
Don’t forget, registrations are now open for Climate Bonds Conference2020.

This is our last Market Blog for 2019. We hope you’ve enjoyed reading all the developments in green finance through thisyear as much as we have in preparing each post. We’ll be back in January with some tweaks to make the Climate Bonds
Market Blog even better in 2020!
Till then, Merry Christmas and best wishes for the New Year!

Climate Bonds

Disclosure: Some of the organisations mentioned in this communication are Climate Bonds Partners. A list of Partners isavailable here.
Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an
investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external
websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product andno information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment
decision.
Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect thecredit worthiness of the designated debt instrument, nor its compliance with national or international laws.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation
makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on any information contained within
this, or any other Climate Bonds Initiative public communication.