Markets Monthly #1: USD14.3bn Issuance in January: Chile 3rd Sovereign GB: Mexico &Spain Next? Renew re-joins Indian market: Spotlight on Issuers from Energy Grid
Providers
Climate Bonds Conference2020, 5-7th May, London – Green Transition - Opportunity of the Decade
Just 11 weeks away, Agenda now available - Don’t miss the premier green finance event of 2020!

More information & registration is here.

Welcome to the new Markets Monthly!
We have changed the format slightly and would love to hear your feedback…
In 2020 we are looking to provide a more holistic view of the green bond market, integrating analysis and reading
lists, with a focus on selected deals by new issuers.
If you’re interested in offering feedback or would like to know more about our Market Data please reach out at:
dataenquiries@climatebonds.net

What’s New
Our Green Bonds Market Summary 2019 analyses the record annual green bond and green loan
issuance to 30 December of USD257.7bn. The total is up by 51% on the final 2018 figure of
USD170.6bn. USD10bn (4%) of the total are green loans.

1Green bond deal count across the globe: January 2020

January at a glance
The year started off with total January issuance of USD14.3bn (a drop of 29% compared to January 2019), taking the total
cumulative issuance volume to date up to USD789bn.
Green Sovereigns had a strong start to the year with USD3.8bn solely coming from the Republic of Chile. Chile first joined
the sovereign green bond market in June 2019 with a ground-breaking Climate Bonds Certified issuance, Latin America’s
first sovereign to issue a green bond, generating very high demand.
January saw four deals; two of them were taps of 2019 issuances and two were new bonds, again denominated in USD and
EUR. All were Certified Climate Bonds. The new deals achieved historically low rates and financed mainly low carbon
transport projects.
Overall, Latin America is expecting further growth in green bond volumes. Juan Antonio Ketterer from the IDB is
optimistic about the region, outlining the some of the development banks’ green finance directions in this special
Environmental Finance feature.
On the sovereign side, Mexico is planning its inaugural issuance sometime this year.
Sovereign greens from Europe are also gaining attention as Danish pensions administrator PKA made a further
investment of DKK1.5bn (USD221.1m) in the Dutch sovereign bonds financing renewable energy, low-carbon transportand climate adaptation projects.
Denmark is also planning an innovative structure for green bonds where a vanilla issuance would be combined with a“green certificate” – both individually tradable. The Danish Treasury is considering this from a liquidity management
perspective and to protect its AAA-rating.
Only two Financial Corporates issued green bonds in January 2020 with a total of USD115.9m, one newcomer to themarket, Orix (Japan) and one repeat issuer, Raiffeisen Bank International (Austria). However, there are already four deals
announced by banks and REITs for February 2020 (see Green Bond Outlook).

2

Non-financial Corporates made up the largest segment of January volume with USD5.6bn. Two large deals contributed tothis figure: Digital Dutch Finco B.V. (Digital Realty Trust), Netherlands, with EUR1.4bn (USD1.6bn) and E.ON, Germany,
raising EUR1bn (USD1.1bn), both repeat issuers.
Renewable Energy took up 34% of the overall Use of Proceeds (UoP) allocation for the month (Digital Dutch Finco B.V. andE.ON allocating 33% and 50% of their issuance volume, respectively).
ReNew Power, India’s largest independent power producer, returned to the market with a USD450m deal which will be
used for refinancing instruments maturing next year. Such repeat issuance shows an ongoing commitment to energy
sector decarbonisation, crucial to meeting India’s ambitious clean energy goals. Financial risks for carbon intensive
industries are increasing, as reported by Lex: Stranded energy assets could make up as much as USD900bn in the energy
sector.
Two energy grid operators (National Grid and Red Eléctrica) had their inaugural green bond issuance in January andcontributed to the 34% UoP figure (see New Issuer Spotlight).
The Water sector saw the lowest issuance volume since March 2019 at USD0.7bn. Similarly, funds for Waste projects
were significantly lower compared to individual monthly issuance all year in 2019. In January 2020 no Industry or ICT
projects were financed.

3

Worth Reading
Manuel Adamini, Head of Investor Engagement at Climate Bonds, discusses the brown-to-green transition in depth with
Natixis. Read the full interview here.
…and:
•
•
•
•
•
•

Who Are The 100 Most Sustainable Companies Of 2020? - Forbes
ESMA sets out sustainable finance strategy - Finextra
Investors and the Blue Economy - Credit Suisse
European boost for green bonds - Private sector must finance Brussels’ environmental plans - HSBC
RobecoSAM fund seeks opportunity in ‘circular economy’ - funds europe
Singapore advances its role as green finance hub with a $44m green loan into Myanmar - Shwe Taung> 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
Porsche AG (EUR1bn/USD1.1bn), Germany. The luxury car maker issued its first green instrument; a green Schuldschein
which is Certified against the Low Carbon Transport Criteria of the Climate Bonds Standard. It finances and refinances
previous and future investments in the development and manufacture of the new Porsche Taycan.
This is the first fully electric sports car to be produced by the iconic auto maker.
Porsche is the first car maker to obtain Certification for a green bond under the Low Carbon Transport Criteria, a signal tothe automotive industry for adopting best practice towards the manufacture of a greener sports car.
Porsche Taycan’s production was announced in August 2019 and the car will be available in various markets in the coming
months. The manufacturing plants are based near Stuttgart, Germany. Until the proceeds are fully allocated, annual
reports will be made available to bondholders only. These reports will have details regarding the allocation of proceeds.

In January 2020, two major grid operators from the United Kingdom and Spain entered the green bond market financing avariety of projects collecting more than USD1b of funding together. These players are crucial in spurring the shift torenewable energy, as acknowledged at the Future Energy Summit in Abu Dhabi in the middle of January.
National Grid (EUR500/USD554m), a non-financial corporate from the United Kingdom, issued its inaugural green bondmaturing in 5 years’ time. This senior unsecured green bond benefits from an SPO issued by DNV GL. Emphasising theimportance of decarbonising the energy sector, the National Grid will contribute to the UK’s Net Zero Carbon by 2050
target.
Eligible categories include renewable energy, which covers grid connection, transmission and distribution infrastructure,and renewable energy generation. Further projects will focus on energy efficiency, green buildings, clean transportation,
pollution prevention and control, as well as sustainable natural resource management and land use.
Allocation and impact reporting will be available through the company’s website or the annual report within a year fromthe first borrowing date and will continue until full allocation. The allocation report will include: the list of eligible green
projects, the aggregated amount of allocated proceeds to each eligible project category, the ratio of financing andrefinancing, and management of unallocated proceeds. The impact report will include indicators such as CO2 emissions
avoided, and renewable energy sources connected (MW).
Climate Bonds view: Decarbonising the energy sector plays a major role in shifting to a low-carbon economy. In addition
to the process of power generation itself, it is vital to invest in grid infrastructure and storage technologies. The National
Grid is doing exactly this in order to contribute to the UK’s target of becoming carbon neutral by 2050, whilst adding to the4yet sparse pool of 15 British green bond issuers. Volume is currently at a total of USD15.3bn in green bonds outstanding
with the largest proportions going towards renewable energy (29%) and water (23%) projects.
The Green Bond Framework covers a broad spectrum of eligible categories on the core business side (such as connection
infrastructure and retrofits to reduce energy losses) as well as the operational side (e.g. green buildings).
To date grid operators from 10 different countries have issued green bonds, mainly from Europe. We hope that thisencourages issuers from other regions to consider such projects in the future.

Red Eléctrica (EUR700/USD775m), a government-backed entity from Spain, joined the green bond market with a seniorunsecured instrument that will mature in 8 years. Sustainalytics issued a SPO for the framework, whose eligible project
categories include renewable energy and clean transportation. This ranges from investments in integrating and enhancing
the transmission capacity for renewable energy and the direct integration of renewable energy generation to the grid todecarbonisation projects enabling renewable energy integration, as well as investments in high speed rail lines andelectrical connections.
Information on allocation and impact of the green financing will be provided on an annual basis on the company’s website
until full allocation of the net proceeds. These reports will include information such as the total amount invested in theeligible projects, the ratio of new and existing projects, the year of investment, the balance of unallocated proceeds andthe geographical distribution of assets.
Key measures disclosed in the impact report will be the increase of renewable energy capacity and estimated annual CO2
emissions avoided. The impact report may also include case studies.
Climate Bonds view: Spain ended 2019 with renewables accounting for almost half of the total installed energy generation
capacity. Red Eléctrica’s green bond underpins this trend and the country’s ambition to decrease its carbon footprint andto switch to 100% renewable electricity by 2050.
It’s positive to see such transparency in post-issuance reporting, which will also include the geographical distribution ofassets financed. Not only is this level of detail rare to see in green bond reports, but it is also particularly important forindustries comprised of interconnected networks of operational assets, which grid operators clearly fall under.

New Issuers continued...
Public Sector••••

Ferde AS (NOK2bn/USD223m), Norway, 4.5Y original term, SPO provided by CICERO.
Nord/LB (EUR300m/USD331m), Luxembourg, 5Y original term, SPO provided by Sustainalytics.
San Lorenzo Valley California Water District (USD14m), USA, 18.1Y original term, assurance provided by BAM
GreenStar - issued in August 2019.
The State of Nevada Department of Business and Industry Environmental Improvement (USD50m), USA, 18.5Y
original term, SPO provided by Sustainalytics - issued in September 2019.

Financial Corporates••

Orix (JPY10bn/USD92m), Japan, 5Y original term, SPO provided by Sustainalytics.
Sunndal Sparebank (NOK75m/USD9m), Norway, 3Y original term, SPO provided by CICERO - issued in February
2019.

ABS & Loans••••BYD Company Limited (CNY3.7bn/USD521m), China, 3Y original term, SPO provided by Lianhe EQ - issued inAugust 2019.
Capital Court Limited (HKD3.6bn/USD460m), Hong Kong, 4Y original term, no third-party review - issued in
September 2019.
Ningbo Beilun Public Traffic Co., Ltd. (CNY615m/USD88m), China, 10Y original term, no third-party review issued in December 2019.
Qingdao International Shipping Building Management Co., Ltd. (CNY1.9bn/USD270.1m), China, 17.7Y originalterm, no third-party review - issued in November 2019.

5

•
•
•
•

State Power Shanxi New Energy Development Co., Ltd (CNY405m/USD58m), China, 3Y original term, SPO
provided by The iGreen Bank - issued in December 2019.
The Wharf (Holdings) Limited (HKD2.0bn/USD2.6m), Hong Kong, no third-party review - issued in January 2019.
Tongren Jiaotong Group Public Transportation Co., Ltd. (CNY220.0m/USD31.0m), China, 1Y original term, nothird-party review - issued in December 2019.
Vietnam Prosperity Joint-Stock Commercial Bank (USD71m), Vietnam, 5Y original term, no third-party review.

Non-financial Corporates
•
•
•
•
•

EEW Capital Finance PLC (EUR25m), UK, 5Y original term, Certified Climate Bond - issued in August 2019.
GSP Renewable Energy Pte Ltd (USD15m), China, 5Y original term, SPO provided by HKQAA - issued in July 2019.
Jiangxi Provincial Water Conservancy Investment (USD300m), China, 3Y original term, assurance provided by
HKQAA - issued in December 2019.
Tokyu Fudosan Holdings Corp (JPY10bn/USD91m), Japan, 5Y original term, rated Green 1 by JCR.
Zhuhai Da Heng Qin Invest Co (CNY800m/USD114m), China, 2Y original term, assurance provided by EY - issued in
November 2019.

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

Green Bond Outlook
Announced for the month of February are predominantly
repeat issuers, but three market newcomers have also
stated their issuance already: Bankinter (Spain), Telia Co(Sweden) and Santander Consumer Bank (Norway).
Overall, deals from four financial corporates are scheduledfor February. The majority of the issuers come from
Scandinavia.

Issuer Name
LBBWRikshem
Shwe Taung Group
Bankinter
Prologis
MünchenerHyp
Telia Co
Santander Consumer Bank

Closing Date
03/02/2020
03/02/2020
05/02/2020
06/02/2020
06/02/2020
10/02/2020
11/02/2020
12/02/2020

Link
Open
Open
Open
Open
Open
Open
Open
Open

After Peru and Colombia’s preliminary announcements
last year, Mexico is also planning to join the green bond market with inaugural issuance foreshadowed for 2020.
Ecuador came out with its first Sovereign Social Bond in January financing the country’s housing sector.

Spain will likely issue its first green Sovereign bond in the second half of 2020 with a 20-year tenor. EPSA is also expected
to tap the green bond market again to finance solar projects.

6Data and references
Repeat issuers in January

Repeat issuers: January – November 2019 (not previously included)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

ADB (Asian Development Bank): SEK1.5bn/USD155.7m - November 2019
ADB (Asian Development Bank): SEK150m/USD15.4m - August 2019
ADB (Asian Development Bank): SEK1.3bn/USD132.2m - July 2019
Alperia SPA: NOK935m/USD117.8m - October 2017
BKS Bank: EUR5m/USD5.5m - September 2019
Eidsiva Energi AS: NOK500m/USD54.7m - October 2019
Eidsiva Energi AS: NOK1bn/USD109.4m - October 2019
Fastighets AB Balder: SEK1.3bn/USD136.9m - December 2019
First Abu Dhabi Bank (National Bank of Abu Dhabi): USD50m - September 2019
Hang Lung Properties Limited: HKD1bn/USD128.3m - December 2019
Hysan MTN Limited: HKD500m/USD63.7m - April 2019
Hysan MTN Limited: HKD250m/USD31.9m - May 2019
IFC (International Finance Corporation): HKD100m/USD12.7m - June 2019
Public Service Company of Colorado (Xcel Energy): USD550m - August 2019
Samhällsbyggnadsbolaget i Norden AB: SEK500m/USD51.6m - September 2019
Sparebanken Sogn og Fjordane: NOK300m/USD33.1m - September 2019
Keppel Reit: SGD150m/USD110.1m - December 2019
Ocean Properties: SGD505m/USD369.5m - June 2019
Soilbuild Group Holdings: SGD248m/USD179.7m - September 2019
OCBC: AUD500m/USD341.7m - May 2019
OCBC NISP: USD150m - August 20187

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 dateReasonExcluded
RYOBI LIMITEDJPY13bn/USD119.5m

31/01/2020

GB not aligned

Vasakronan

EUR100m/USD563.7m

12/04/2019

Unlabelled

Guangxi Briwater Environmental Investment
Co. Ltd.
Brookfield property finance ULC

TBC

TBC

Insufficient information

CAD400m/USD0m

15/01/2020

Unlabelled

IBRD

CAD1.5bn/USD1.1bn

26/07/2019

Sustainability/Social bondWilliston State College

USD7m

22/08/2019

Not aligned

The Confederated Tribes of the Warm Springs
Reservation of Oregon
Kaneka Corporation

USD20.4m

29/08/2019

Insufficient information

JPY5bn/USD46.4m

12/09/2019

Not aligned

Port of LA

Ichinen Holdings Co., Ltd.

USD7.9m
USD7.9m
SEK750m/USD77.3m
SEK850m/USD87.6m
TBC

18/09/2019
18/09/2019
25/09/2019
25/09/2019
TBC

Not aligned
Not aligned
Not aligned
Not aligned
Insufficient information

Porterbrook

GBP100m/USD129.5m

01/11/2019

Not aligned

WB (IBRD)

CAD1.5bn/USD1.2bn

16/01/2020

Sustainability/Social bondFuyo Lease

JPY5bn/USD46.4m

22/07/2019

Not aligned

Shinhan Group Financial Group

EUR500m/USD500m

30/07/2019

Not aligned

IFC

SEK65m/USD6.9m

17/07/2019

Not aligned

Credit Agricole CIB

USD300m

09/07/2019

Not aligned

Sumitomo Mitsui Finl Grp Inc

EUR500m/USD558.6m

22/05/2019

Insufficient information

Southwestern Public Service Co

US300m/USD300m

11/06/2019

Insufficient information

Construcciones el Condor SA

COP100bn/USD31.4m

28/03/2019

Insufficient information

Electronica Finance Limited (EFL)

INR709.509m/USD10m

16/04/2019

Not aligned

Lidl Austria

EUR300m/USD335.5m

15/05/2019

Not aligned

East Renewables

EUR75m/USD83.5m

21/05/2019

Insufficient information

City council of Stockholm

SEK1bn/USD105.8m

04/06/2019

Insufficient information

RCBC

PHP8bn/USD154m

04/06/2019

Not aligned

Landsea green group

USD200m

20/06/2019

Insufficient information

Owens-Illinois Group

EUR500m/USD550.8m
EUR500m/USD550.8m
EUR300m/USD331m

12/11/2019
12/11/2019
15/11/2019

Not aligned
Not aligned
Not aligned

NCC

SKF

8

EIB (European Investment Bank)

AUD250m/USD185.6m

18/06/2018

Unlabelled

Contact Energy

NZD50m/USD33.1m

15/01/2020

Sustainability/Social bondShriram Transport Finance Corp

USD500m

16/01/2020

Sustainability/Social bondRepublic of Indonesia

USD167.9m
USD1.1bn

20/02/2019
20/02/2019

Not aligned (regular bond)Not aligned (regular bond)Mowi ASA

EUR50m/USD55m
EUR75m/USD82.7m
EUR200m/USD221.9m
EUR200m/USD220.4m

30/01/2020
31/01/2020
22/01/2020
31/01/2020

Insufficient information
Insufficient information
Insufficient information
Insufficient information

Credit Agricole

JPY2.1bn/USD19.1m

27/01/2020

Insufficient information

ENGIE

EUR750m/USD848.7m

21/06/2019

Insufficient information

Stockholms Lan Lansting

SEK400m/USD42m

22/01/2020

Insufficient information

NatixisEUR2.149m/USD2.4m
EUR30m/USD33.5m

17/12/2019
13/12/2019

Insufficient information
Insufficient information

Pending
EUROFIMANews and reports links
Title

SourceLink

Investing news
Bringing Transparency to Green Bonds in Latin America and the
Caribbean
Chile obtiene una tasa récord en emisiones de bonos verdes endólares
Ecuador issues world's first Sovereign Social Bond, with thesupport of an IDB guarantee
GREEN ISSUANCE

Environmental FinanceOpen

PV Magazine

Open

IDB

Open

Danmarks Nationalbank

OpenGreen bonds: a step towards a carbon-neutral future for Latin
AmericaGreen Finance in Singapore: Barriers and Solutions

Al dia

Open

ADB

Open

Lex in depth: the $900bn cost of ‘stranded energy assets’

Financial TimesOpen

PKA takes fifth of latest Dutch green bond issuance

IPE

Open

ReNew Power Secures $450 Mn Funds Through Dollar Bonds

Inc42

Open

RobecoSAM fund seeks opportunity in ‘circular economy’funds europe

Open

Reading & reports
Esma sets out sustainable finance strategy

FinextraOpen

European boost for green bonds

HSBC

Open

Investors and the Blue Economy

Responsible Investor

Open

Walking the Talk – Transitioning Brown Industries to Green

NatixisOpen

Who Are The 100 Most Sustainable Companies Of 2020?

ForbesOpen

Green bond gossip
Colombia explores green bondLatinFinance

Open

9

El Tesoro prevé una emisión neta de 32.500 millones en 2020 y
emitir bonos verdes en el segundo semestre
EPSA taps bond market to finance solar projects

El peridodico de la energuaOpen

LatinFinanceOpen

Mexico preparing ground for green bond in 2020 – Herrera

LatinFinance

Open

Peru could follow Chile with green bondLatinFinanceOpen

Don’t forget, registrations are now open for Climate Bonds Conference2020! 5th-7th May in London.
Your Feedback is welcome.
Watch this space for market developments and any if you have any data requests please send them 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.

10