Markets Monthly #4 - 07/05/2020: April GB issuance bounces back: Green stimulus
calls grow: China pandemic bonds: Covid & Social Bonds appear: Portugal’s 1st green loan:
CBI online events programme: New reports and more!
Welcome to the Markets Monthly!
We are still fine tuning our new format and would love to hear your feedback on how we reflect the market, analysis, newdeals and selected reading.
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Climate Bonds Connected – Online Programme
Climate Bonds Connected is our new online programme with all the latest transition, green & sustainable financedevelopments. Webinars, podcasts and more.

Don’t miss our popular EU Taxonomy Explored – Talk with TEG Experts series. Every Thursday at 15:00 (Paris)14:00(London).
Up next in the EU series is Adaptation & Resilience on 14th May. The full schedule is available here.
We are also launching our new Leading Climate Ideas series of webinars next week. The first will feature international
green finance authority Dr Ma Jun, interviewed by Sean Kidney.
Latest in our ASEAN webinar series is The Pricing Benefit of Green Bonds on 11th May and Green Markets: How Much do
Regulators Need to Regulate on 19th May.
Finally, don’t forget our Markets Monthly ‘Coffee Break’ Webinar. 15 mins of market analysis & conversation with Lea
Muething, 14th May.

Latest Reports

Green Bond Treasurer Survey 2020
The Green Bond Treasurer Survey 2020 is a first of its kind, unique interrogation of market
experience to identify the core benefits and challenges of issuing green bonds and provide guidance
to potential newcomers into green debt markets. 86 treasurers from 34 countries were interviewed
for the project.

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ASEAN Green Finance State of the Market
The report is an analysis of the issuance of green bonds and green loans in Southeast Asia. Following
CBI’s first 2018 publication of this report, this 2019 report reviews the progress made across theregional green finance landscape and emerging opportunities for more green bonds, loans and sukuk
amongst ASEAN nations.

Green Infrastructure Investment Opportunities (GIIO) Vietnam
The inaugural Green Infrastructure Investment Opportunities Vietnam report presents the key
trends and developments for green infrastructure and energy in Vietnam. It was prepared to help
meet the growing demand for green investment opportunities and to support the country’s
transition to a low carbon economy. Click here for the Vietnamese version.

April at a glance
April 2020 saw green bond issuance of USD16.4bn which is the largest monthly volume this year so far. Despite this being
a 14% year-on-year decrease, green issuance nearly quadrupled (+395%) compared to March 2020 (USD3.3bn). The boost
takes overall cumulative global issuance on Climate Bonds figures to USD829bn.

The emerging signs of a recovery are welcome after most financial markets seeing some of their worst times in recent
months due to the COVID-19 pandemic. Not only has green bond issuance bounced back to somewhat normal levels,
organisations are also actively issuing social and particularly COVID-19 related instruments.
Getinge (Sweden) recently issued commercial paper that is solely dedicated to financing the expansion of production inventilators and other life-saving equipment. Indonesia has issued a USD4.3bn bond to support the country’s battle
against the pandemic, including funding for healthcare, social security and business resilience programmes. The market
reaction to such bonds has been largely positive.
Many entities have offered their support: for example, Sustainalytics said it had expanded its internal taxonomy toinclude use of proceeds categories that relate to the current pandemic, such as healthcare and socio-economic impact
mitigation. ICMA is supporting market participants with additional information through its social bond guidance includinga Q&A section to address some burning questions on the topic of “COVID bonds”.
China has commenced issuing pandemic bonds at scale. Selected deals financing projects such as medical waste
management for quarantine centres; rent reductions; and update and replacement of power generation equipment for2

epidemic prevention and control add up to USD3.1bn. China Longyuan Power Group Corporation Limited, an energy
company, issued three such bonds in March and April, mainly supplementing operating expenditures and funding payment
equipment leasing as well as wind farm maintenance fees for a subsidiary in Wuhan that is most affected by the pandemic.

In addition to pandemic bonds, Chinese green bond markets are also recovering. After jumping from USD142m to
USD786m between February and March 2020, China’s month-on-month green issuance has now more than tripled ,adding up to a total of USD2.6bn. New issuers made up 89% of this with the largest deal (CNY10bn/USD1.4bn) comingfrom Huaxia Bank. The proceeds are mainly spent on renewable energy and water projects.
Another five countries joined China in logging
issuance volumes above USD1bn in April
2020: France (USD4.2), Spain (USD1.6bn),
Netherlands (USD1.4bn), Canada (USD1.3bn)
and Germany (USD1.1bn). Canada last issued
over USD1bn in a single month in July 2019.
France leads the country ranking mainly due
to the Green Sovereign tap of USD2.9bn.
There is more sovereign issuance to come.
Issuers from countries that appear on the
rankings less frequently have also re-entered
the market: Austria (EVN Group –EUR100m/USD111.2m), Belgium (XiorStudent Housing – EUR100m/USD109m) and
Iceland (Reykjavik Energy – ISK2bn/USD14m).
Overall, the above highlights some good signs that green bond markets in many nations affected by COVID-19 are showing
early signs of recovery and the potential to replicate the month to month growth seen in China.

The road to green recovery
Greening of recovery and future growth remains high on the global agenda. At an international level calls from the IMF,
the NGFS, ADB, major investor groups, business groups, including banking & insurance all share a constant theme aroundclimate and sustainability being at the core of economic planning and policy by governments.
In the UK, there are calls for airline bailout packages to be tied to significant CO2 emission reductions, and the EU is inparallel eyeing ways to attach green strings to emergency funds for airlines. After the US crude oil benchmark West Texas
Intermediate (WTI) monthly future contract prices settling in May crashed to below zero, France brought up the idea of
implementing a carbon price floor.

3In spite of the crisis and after Barclays’ commitment to net zero by 2050 last month, Shell has now announced the same
ambition to be reached by 2050 and so did French oil major Total. In addition to the plan of issuing a green bond this year,
Deutsche Bank has set up a sustainable finance team demonstrating its commitment to a greener agenda.
In the meantime, Robeco has revealed its first green bond fund and, following Larry Fink’s further commitment tosustainability, BlackRock has now launched its first global unconstrained ESG total return bond fund.

Worth reading
Japan's Ministry of the Environment has published updated green bond guidelines. The scope has been expanded tocover green loans and sustainability linked loans – Ministry of Environment (Japan)
Climate Bonds is continuing its collaboration with Japan’s Green Bond Issuance Promotion Platform, with the public
release of two more reports. Japan Green Finance State of the Market 2019 and Financing Waste Management andResource Efficiency both originally developed for the Platform.
…and:

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New guidance published for green and sustainable loans - LSTA
Russia's bond market is going green - Environmental Finance
Building Back Better. Major Oxford University and Smith School study on green recovery packages stretch
back to the 2008 financial crisis – Smith School of Enterprise and the Environment> Check out the full list of new and repeat issuers.
> Click on the issuer name to access the new issue deal sheet in our online Bond Library.

New issuer spotlight - Certified Climate Bonds
Milwaukee Metropolitan Sewerage District (USD80m), USA, had its inaugural green bond issuance with a 10-year
instrument. The deal finances projects Certified against the Water Infrastructure Criteria of the Climate Bonds Standard.
This is the first Certification in the US Midwest and the first Certification for a combined wastewater and stormwater
program in the US.
The issuer will submit annual reports to the Municipal Securities Rulemaking Board (MSRB), as per the regulatory
requirement. In addition, Milwaukee will produce reports with information on the allocation of proceeds and the projects
financed.
Nanjing Jiangbei New Area Public Assets Investment & Development (RMB490m/USD72.8m), China, debuted with agreen bond Certified against the Water Infrastructure Criteria of the Climate Bonds Standard, maturing in three years’
time. The proceeds will be used to refinance the construction of three new sewage treatment plants in Jiangbei New Area,
which is part of the Yangtze River delta area.
Annual reports will have information on the allocation of the proceeds, as well as indicators of the sewage treatment
plants, including the amount of water treated. The deal marks Approved Verifier iGreenBank’s first verification. It is also
the first time the Climate Bonds Standard Version 3 has been used for a Certification in China.

New issuer spotlightBayernLB (EUR50m/USD56m), Germany, completed its inaugural issuance with a 10.5-year instrument benefiting from an
SPO from ISS-oekom. Eligible green loans in the loan portfolio include renewable energy (photovoltaic and solar thermal
plants as well as wind farms), along with low-carbon real estate and mobility.
There will be allocation and impact reporting for as long as the bonds are outstanding. The reports will be published onBayernLB’s Investor Relations homepage, and will include the notional amount and maturities of outstanding green bonds;
the total amount of proceeds allocated and the number of eligible green loans; the balance of unallocated proceeds; the4amount or the percentage of new financing and refinancing, and the technology and geographic distribution of the
projects funded.
Impact reporting, where feasible, may provide information about the added renewable energy capacity (MW) andestimated avoidance/reduction of CO2 emissions in kilotons.
Climate Bonds view: After BayernLabo issuing a social bond in November 2017, BayernLB has come out with a green bond.
It joins a substantial and growing number of large German banks, including Deutsche Bank with its announcement of apotential deal for this year as well.
Similar to its peers, BayernLB’s focus is on renewable energy projects at the moment, but positively the framework also
defines additional eligible categories for financing.

Sonae SGPS (EUR55m/USD60m), Portugal, took out a green loan financing various types of projects aimed at making its
subsidiary, Sonae MC’s, food retailing business more environmentally friendly. This primarily includes improving energy
and water management in stores (e.g. via enhanced management systems), some local renewable energy generation,
improving waste management processes, and adding EV charging stations in store parking lots.
This marks the first green loan in Portugal, and the first green finance deal for a Portuguese food retailer.
Climate Bonds view: This is a milestone for green finance in Portugal in a very important sector. Even globally, there is stilla lack of investment in greening food services. The deal also complements a loan to Sonae MC from the EIB earlier thisyear, which was aimed at achieving similar improvements in its operations.
However, the green loan could be given higher visibility in Portugal, both among the general public as well as otherpotential issuers, especially given Sonae MC’s ownership of influential and well-known brands and that due to the current
pandemic food retail has been in the spotlight even more.
We also note that the deal does not carry an external review, and that, as a loan, reporting is often more nebulous. We
encourage Sonae MC to report adequately on the use of proceeds and impacts achieved, for example in line with therecently published LMA/LSTA guidance on applying the Green Loan Principles (GLP).

SYCTOM (Agence Métropolitaine des Dechets Menagers) (EUR15m/USD17m), France, joined the green bond market witha 10-year senior unsecured instrument benefiting from an SPO by Vigeo Eiris. The net proceeds of the bond will exclusively
finance or refinance, in part or in full, projects falling under two green project categories: waste collection, management
and treatment, and waste-to-energy.
The issuer has committed to reporting annually on financial indicators and on performance and environmental impact
indicators at project level - starting one year after the issuance and until full allocation of the funds. The annual report will
be made publicly available on its website.
Climate Bonds view: This project is a welcome development as it will help to reduce GHG emissions by reducing theamount of waste going to landfill and recover energy from waste which would otherwise go to landfill. It helps to fill thefinancing gap and investor appetite for such projects as highlighted both in our European Green Bond Investor Survey aswell as the new Waste Management and Circular Economy Sector Briefing.
Xior Student Housing (EUR100m/USD109m), Belgium, came to market with an inaugural 12-year green private placement.
Sustainalytics provided an SPO for the company’s framework. Eligible categories include green buildings in Belgium, theNetherlands, Spain, and Portugal; renewable energy generation and transmission; a variety of energy efficiency projects;
pollution prevention and waste management; clean transport; and water management.
There will be allocation reporting to lenders and investors until proceeds have been fully allocated. The report will containthe total amount outstanding, the amount of unallocated proceeds, and allocation of the net proceeds to the portfolio. It
will also include information on the composition of the portfolio, including its geographic split, the share of financing andrefinancing, and an overview of eligible projects. Impact measures will be disclosed annually as well through ESG reporting
included in the annual report.
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Climate Bonds view: With overall issuance of USD9.1bn from Belgium (90% of which are Sovereign green bonds), the country
has potential to ramp up its green financing. Xior Student Housing is the second Belgian financial corporate to issue a green
bond and the third to finance waste projects.
Their framework covers a broad spectrum of eligible projects in five different categories. It also promises good post-issuancereporting (allocation and impact) which provides transparency to the market and investors. Since the company operates in
the Netherlands, Spain and Portugal, the deal is poised to create positive climate impact beyond Belgian borders.

New issuers continued...
Public Sector
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City of Berkeley (USD8m), USA, 19.4Y original term, SPO provided by Kestrel Verifiers.
Lynwood Utility Authority Enterprise (USD20m), USA, 30.2Y original term, no third-party review.
Guangdong Power Development (CNY300m/USD42m), China, 3Y original term, no third-party review.
Nanjing City Construction Development Co., Ltd. (CNY1.2bn/USD169.7m), China, 2Y original term, SPO provided
by Shanghai Brilliance Credit Rating.
Shenyang Metro Co. Ltd (CNY5bn/USD707.2m), China, 10Y original term, SPO provided by Lianhe Equator.

Financial Corporates••

Bank of Ganzhou Co.,Ltd. (CNY1.5bn/USD212.2m), China, 3Y original term, assured by EY.
Hua Xia Bank Co., Ltd. (CNY10bn/USD1.4bn), China, 3Y original term, assured by EY.

Non-financial Corporates
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Atlantica Yield (EUR290m/USD320m), UK, 6Y original term, SPO provided by Sustainaytics.
Bothwell Spain (EUR234m/USD260m), Spain, 18.Y original term, rated (E1/80) by S&P Global Ratings – issued in
December 2019.
Daiki Axis Co, Ltd (JPY3bn/USD27.6m), Japan, 9.9Y original term, SPO provided by DNV GL – issued in February
2020.
Looop Inc (JPY3bn/USD27.6m), Japan, 15Y original term, SPO and rating (GA1) provided by R&I (Japan).
Nanjing Financial City Construction (CNY1.2bn/USD169m), China, 3Y original term, SPO provided by Shanghai
Brilliance.
Yalong River Hydropower Development Company (CNY1bn/USD142m), China, 3Y original term, SPO provided by
Lianhe Equator.

Loans
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EVN Group (EUR100m/USD111.2m), Austria, 10Y original term, no third-party review.
Oxley Holdings PLC (EUR77.25m/USD86.7m), Singapore, SPO provided by Sustainalytics. – issued in May 2019.

Visit our Bond Library for more details on April deals and a full history of debut green issuances going back to 2017.

Green bond outlook – selected deals
Issuer NameCountry

Closing Date

SourceNXP Semiconductors
Societe du Grand Paris EPIC
Sacramento Municipal Utility District
Autonomous Community of Madrid
Schaeffler AG

The Netherlands
FranceUSA
Spain
Germany

01/05/2020
07/05/2020
07/05/2020
08/05/2020
11/05/2020

NXP Semiconductors
Sustainalytics
EMMA
Global Capital
Schaeffler

6Power Authority of the State of New YorkSouthern California Public Power Authority
New Jersey Infrastructure Bank (29 tranches)

USA
USA
USA

12/05/2020
12/05/2020
13/05/2020

EMMA
Moody’s
EMMA

For May, multiple deals have been issued and announced already. This includes three US Munis: two new issuers(Sacramento Municipal Utility District and Power Authority of the State of New York) and a repeat issuer (New Jersey
Infrastructure Bank).
The Autonomous Community of Madrid (Spain) is scheduled to issue its first green bond, which will be the first green
bond issued by a public administration in Spain.
The chatter on a potential UK green gilt continues – this time tied to a green recovery from the ongoing coronavirus
pandemic. On the corporate side, automaker Daimler wants to venture into green bonds to stay on track with its CO2
reduction targets following the COVID-19 pandemic, according to Chairman Ola Källenius. In the meantime, Unión de
Créditos Inmobiliarios (Spain) is getting ready to issue green bonds as they have established a framework reviewed by
Sustainalytics.

Data and references
Repeat issuers in April

Repeat issuers: January and February 2020 (not previously included)••••

EBRD (European Bank for Reconstruction and Development): SEK1bn/USD105.1m - January 2020
Fannie Mae: USD404.5m - March 2020 (13 deals)
SNCF: EUR50m/USD54.8m - March 2020
Vasakronan: SEK700m/USD71.4m – January and March 2020 (3 deals)

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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.

Excluded
Issuer Name

Amount issued

Issue dateReasonChangzhou Binjiang Economic
Development Zone Investment
Development GroupInter-American Development Bank

CNY500m/USD70.6m

27/04/2020

Working capital

USD4.3bn

24/04/2020

Sustainability/Social bondCaisse Francaise de Financement Local

EUR1bn/USD1.1bn

07/05/2020

Sustainability/Social bond

Kookim Bank

USD500m
USD500m
CNY1bn/USD144m

04/05/2020
04/05/2020
24/04/2020

Sustainability/Social bond
Sustainability/Social bondWorking capital

CNY1.5bn/USD216m

23/04/2020

Working capital

CNY1bn/USD144m

22/04/2020

Working capital

Nanjing Metro Group Co.,Ltd

CNY3bn/USD432m

20/04/2020

Working capital

CGN International Finance Leasing Co., Ltd.

CNY900m/USD129.6m

16/04/2020

Working capital

GuatemalaIFC

USD700m
USD500m
AUD200m/USD137.3m

24/04/2020
24/04/2020
15/04/2020

Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bondGetinge

SEK1bn/USD105.7m

17/04/2020

Sustainability/Social bondCassa Depositi e Prestiti

EUR500m/USD555.8m
EUR500m/USD555.8m
EUR2bn/USD2.2bn

20/04/2020
20/04/2020
14/04/2020

Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond

SEK11.5bn/USD1.2bn
USD8bnUSD260m
USD80m
SEK400m/USD43.3m

23/04/2020
22/04/2020
14/06/2019
19/12/2020
17/04/2019

Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond

USD0.8m
USD0.7m
USD0.7m
USD0.8m
USD0.8m
USD0.8m
USD0.9m
USD0.9m
USD0.9m
USD1m
USD1m
USD5.4m
USD10.9m
USD12.4m
EUR1.3bn/USD1.4bn

16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
16/04/2020
15/04/2020

Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bondFenghua of Ningbo City Zone Investment
Co.,Ltd.
Huainan City Construction and Investment
Co.,Ltd.
Rongsheng Petrochemical Co., Ltd.

NWB Bank
IBRD
Bayport Management
Fastighets Ab Trianon
City of Berkeley

Flemish Community

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Hongkong and Shanghai Bank

HKD189.2m/USD24.3m

03/04/2020

Maturity

NIB

SEK4bn/USD423m

09/04/2020

Sustainability/Social bondCouncil of Europe Development Bank (CEB)

EUR1bn/USD1.1bn

09/04/2020

Sustainability/Social bond

EIB

EUR1bn/USD1.1bn

15/04/2020

Sustainability/Social bondPending
Issuer Name

Amount issued

Issue dateReasonBeijing Enterprises Clean Energy GroupLtd
MPT Finco

CNY900m/USD127.1m

29/04/2020

Insufficient information

CAD303.3m/USD228.1m

02/12/2019

Insufficient information

Export-Import Bank of Korea

EUR700m/USD778.1m

27/04/2020

Insufficient information

Nordea Bank

SEK64.3m/USD6.8m

24/01/2020

Insufficient information

Natixis

EUR10m/USD11.1m

22/04/2020

Insufficient information

Hannon Armstrong

USD400m

21/04/2020

Insufficient information

Hemso Fastighets AB

SEK500m/USD51.8m

11/02/2020

Insufficient information

Capitaland

SGD400m/USD296.1m

14/04/2020

Insufficient information

Swedish Export Credit

SEK500m/USD52.9m

14/04/2020

Insufficient information

HLP Finance

HKD500m/USD64.5m

07/04/2020

Insufficient information

Ontario Power Generation Inc

CAD400m/USD307.3m
CAD800m/USD614.5m
USD400m

08/04/2020
08/04/2020
08/04/2020

Insufficient information
Insufficient information
Insufficient information

Analog Devices

As always, your feedback is welcome!
Watch this space for more market developments. Follow our Twitter or LinkedIn for updates. E-mail data requests todataenquiries@climatebonds.net.

‘Till next time,
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.

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