Markets Monthly #3 – 09/04/2020: Cumulative issuance USD810bn: China increases
after Jan, Feb lull: Calls for green stimulus grow: CBI Asia focus: LGS in super green loan:
New CBI online events programme and more!
Welcome to the Markets Monthly!
We are still fine tuning our new format from January and would love to hear your feedback on how we reflect the market,
analysis, new deals and selected reading.
For more information on the Climate Bonds Database on Market Data mail to: dataenquiries@climatebonds.net

Don’t Miss!
Climate Bonds Connected – New Online Programme
Climate Bonds Connected is our new online programme to stay connected with us for all the latest transition, green &sustainable finance developments. It includes webinars, podcasts and blogs on a variety of topics. Look out for our firstMarkets Monthly Podcast due next week.
Don’t miss our popular EU Taxonomy Explored – Talk with TEG Experts series. Every Thursday at 15:00 CEST (14:00 BST).
Thursday 9th Electricity and Energy Generation, Thursday 16th Manufacturing. Full April, May June schedule available here.
Coming up: Focus on Asia
In partnership with HSBC, we will launch our ASEAN Green Finance State of the Market report on 16th April. Sign up for thelaunch webinar here. Later in April we will publish our Vietnam Green Infrastructure Opportunities (GIIO) report. This will
be followed by our inaugural Vietnam Green Infrastructure Investment Opportunities (GIIO) report (dates and webinartba) and new reports on green finance in Japan, China and Hong Kong which are all in the pipeline.

Green Bond Pricing in the Primary Market: H2 (Q3-Q4) 2019
The report monitors the performance of 36 EUR and 13 USD denominated benchmark size green
bonds with a total value of USD36bn issued during H2 2019 with spotlight on Green Sovereigns andemerging greenium. Read the Environmental Finance story.

EuroPACE 2.3 - Refinancing EuroPACE Loans in the European Fixed Income Market“EuroPACE”, a project funded by the European Commission, seeks to boost energy efficiency
investments for buildings in Europe and has been developed by a number of NGOs and organisations
under the EuroPACE Consortium umbrella. As a member of the EuroPACE Consortium, the Climate
Bonds Initiative has worked on a series of reports aimed at supporting the uptake of the programme.

1March at a glance
Overall March 2020 issuance added up to USD2.8bn, translating into an 83% year-on-year decrease and down from
USD15.6bn in February 2020. This is the lowest monthly issuance volume since December 2015.

The COVID-19 outbreak has
had a visible impact on all
financial markets, including
the debt capital market andgreen bond segment. The
disruption has left companies
and governments shift into
crisis mode. However, while
countries tackle the pandemic
and its economic impact, talkis already shifting to the role
capital markets can play ineconomic recovery. Increasing
voices are calling on governments and regulators to ensure a green and sustainable slant to measures supporting
stabilisation and recovery. Bloomberg suggests that government stimulus could be attached to emission-cutting projects,
such as tax breaks for buyers of electric cars or subsidies for energy efficient homes. The IEA argues that the transition togreen energy should be front and centre in government stimulus plans, whereas the EU's Environment, Public Health andFood Safety Committee Pascal Canfin points out the importance of connecting fiscal stimulus packages to the EU’s Green
Deal. EBRD echoes this, stating that governments should utilise “green tilting” and build stimulus packages round climate
action and resilience, and support towards green firms. European Commission’s President Ursula von der Leyen said thatpriorities of the new long-term budget – namely digitalisation, decarbonisation and resilience – are not going to change.
The World Bank states in a blog post that response measures to the crisis are already identified on projects around climatechange adaptation.
Nevertheless, new bonds whose proceeds contribute to advancing sustainable development can still be seen in themarket. The State Bank of India (SBI) just issued a USD100m Certified Climate Bond. Medical multinational Pfizer came out
with a sustainability bond for social and environmental impact. The deal will finance the company’s environmental impact
management (the bond is moved from the main Climate Bonds Green Bond Database and added to the Sustainability Bondsub-segment.) It will also fund initiatives to facilitate access to the company’s products which includes addressing the
COVID-19 pandemic and the threat of antimicrobial resistance. This is the first labelled sustainability bond from abiopharmaceutical company.
As recent developments have shown, innovative green structures are being used by an increasing number oforganisations: forestry company UPM from Finland is one of the first companies to link the pricing mechanism of a
syndicated revolving credit facility to biodiversity as well as climate targets. Spanish wind turbine manufacturer Siemens
Gamesa entered into an interest rate swap with an ESG trigger which incentivises the company to improve its ESG rating.
The current situation also doesn’t keep companies from making further commitments to cut emissions: Barclays (UK)announced their ambition to a 2050 net-zero climate policy covering both operations as well as investments.

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Overall, 2020 issuance is now at USD33.9bn, mainly coming from Europe with North America ranking second and AsiaPacific third. As expected, for each region, a clear decline was recorded as compared to last year’s Q1 volumes. This
month, the major share of issuance came from Asia-Pacific with an equivalent of USD1.7bn, making up 61% of total Marchvolume.
Out of individual countries, China contributed USD786m and Japan USD714m; the US came in third (USD489m). China
issuance only amounted to USD147m in January this year and USD142m in February. The largest deals came from JRTT
(Japan) with JPY42.6bn (USD388m) and Russian Railways (Russia) with CHF250m (USD257m). Both organisations use
Climate Bonds Programmatic Certification process for repeat issuers.

No green sovereign issuance took place in March. The main issuer types were Government-backed entities and Nonfinancial corporates. Included in the latter group is Konan Ultra Power from Japan, whose JPY60m (USD1m) deal will
finance LED lighting projects and is their second green instrument to date.
Proceeds from other green issuances mainly funded Low-carbon Transport and Buildings with three deals from China
solely financing projects in either of these two categories. The month also marked the first time since the inaugural green
bond of May 2019 that issuers from Russia tapped into the market in two consecutive months. This time, the repeat
issuer, Russian Railways will finance the purchase of electric trains and the phase out of diesel and older electric trains.

3Worth reading
To complement their existing Portfolio Impact Analysis Tool for Banks, the UNEP FI launched tools aiming to help theprivate sector to measure and manage the impact of their activities – Green Finance Platform
…and:
•
•

Michael Eckhart, one of the original authors of the Green Bond Principles, argues that a new climate rating
system is needed for all bonds - Environmental Finance
Fiona Reynolds, chief of the influential investor organisation PRI says ‘there must be a green and sustainablebackbone to the stimulus’ and the recovery should align with social and environmental outcomes – UN PRI> 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
Local Government Super (AUD65m/USD38m), Australia, took out its debut green loan Certified against the Low Carbon
Buildings (Commercial) Criteria of the Climate Bonds Standard. LGS is an Australian superannuation (pension) fund andmanages the Local Government Property Fund whose portfolio holdings include commercial real estate assets. The
proceeds will refinance the issuer’s investments in several office buildings. Annual reports will be made available directly
to the lender and will have information regarding the allocation of the proceeds and the properties themselves.
Westpac, already a prominent green issuer in the Australian market, partnered with LGS on the deal. This marks the firstsuperannuation fund in the world to receive Certification under the Climate Bonds Standard.

New issuer spotlight
Taweelah IWP (USD785m), UAE, issued its debut green Sukuk in September 2019. The 32-year instrument benefits froman SPO issued by Vigeo Eiris and will finance a water desalination project in the Taweelah complex in Abu Dhabi, UAE. This
includes the design, construction and maintenance of a reverse osmosis plant, related infrastructure and facilities. The
project is scheduled for completion by 2022. A photovoltaic power plant complementing the energy supply from the grid isalso included in the project plan.
Climate Bonds view: This is the fourth issuer from the UAE joining the green bond market with the second largest issuanceso far. The deal will contribute to the country’s Energy Strategy 2050, which includes a target to reduce the national
carbon footprint linked to power generation by 70%. It also takes action on one of the most pressing issues accompanying
climate change: water stress. By building the largest reverse osmosis plant in the world, this investment helps ensure
secure water supply in the country. In the MENA region, most of the green bonds to date have come from the UAE. We
hope that other countries will recognise the opportunity and follow the lead.
Attend Ambiental (BRL55m/USD13m), Brazil, completed its debut issuance in October 2019 with a 7-year green bond.
Sitawi provided an SPO on the issuer’s framework, which includes plans to allocate funding towards the refinancing ofexpenses for an industrial waste treatment facility in Barueri (State of Sao Paulo). The expenses refer to a loan obtained
from US Bank and Corporación Interamericana para el Financiamiento de Infraestructura (CIFI) – itself a green bond issuer– to finance the construction and extension of the plant, as well as investments in the four pre-treatment lines.
The issuer commits to standardised annual reporting on the allocation of proceeds on its website until full allocation, as
well as annual reporting on impacts (various metrics) via its Sustainability Report until maturity.
Climate Bonds view: Sabesp, one of the issuer’s parent companies, was identified in our analysis of potential public sector
issuers in LatAm (as a state-owned entity). This deal reaffirms that there is huge scope to increase green infrastructure4

investments in Brazil and the broader region, which in the case of Attend Ambiental’s plant will contribute towards cleaner
soils and water supply while promoting water conservation, biodiversity and human health.
Edra Solar Sdn Bhd (MYR245m/USD59m), Malaysia, finalised its inaugural issuance in October 2019 with a green Sukuk
maturing in 18 years. The deal refinances up to 80% for the development of the 50MW Kuala Ketil Solar Farm, including
the design, construction, ownership, operation and maintenance of the plant. Edra Solar has allocated a buffer zone
surrounding the facility to the local community for the cultivation of pineapples and/or other crops.
The full list of eligible categories under the framework spans renewable energy, pollution prevention and control, ecoefficient and/or circular economy adapted products, production technologies and processes and socioeconomic
advancement and empowerment.
There will be allocation and impact reporting through different channels, including annual reports or website updates.
Allocation reporting will include originally allocated and utilised amounts to eligible projects as well as the unutilisedamount and where it is placed or invested until utilisation. Impact reporting will, where feasible, include impact objectives
from the eligible projects, such as the installed capacity of the plant, the annual electricity generated and GHG emissions
avoided, the number of farmers supported and jobs created, and the revenue generated for the community.
Climate Bonds view: So far, some USD1.3bn in green bonds have been issued by Malaysian organisations. Edra Solar Sdn
Bhd is the 9th issuer from Malaysia, where mainly non-financial corporates have previously come to market. Deals havemainly financed renewable energy, and this is the second green bond to partially finance agriculture projects. Merging
these two and involving the local community shows how well different initiatives can be combined and leveraged
together. The project will directly contribute to Malaysia’s goal of 20% renewable energy by 2025.
Narragansett Bay Commission Wastewater System (USD196m), USA, joined the green bond market with a 23.5-year
green US Muni bond, which will finance the advance refunding of outstanding Wastewater system revenue bonds.
Climate Bonds view: This marks the third US Muni issuer from Rhode Island with the largest amount to date. In the green
Muni space, 61% of the deals (bond count) are USD100m or below in size. It is therefore encouraging to see a larger deal hit
the market, especially from a state that currently ranks 20th in overall amount issued (USD182m excluding this deal).
We do encourage post-issuance disclosure to the extent possible.

New issuers continued...
Public Sector•••

Mid-Arkansas Utilities Public Water Authority (USD5m), USA, 14.2Y original term, assured by BAM GreenStar.
Ningbo City Rail Trans (CNY2bn/USD288m), China, 3Y original term, SPO provided by Shanghai Brilliance Credit.
Reading Area Water Authority (USD50m), USA, 15.8 original term, assured by BAM GreenStar.

Financial Corporates••

First commercial bank (TWD1bn/USD33m), Taiwan, 3Y original term, assured by Deloitte.
Mega International Commercial Bank (TWD1bn/USD33m), Taiwan, 3Y original term, assured by Deloitte.

Non-financial Corporates
•
•
•
•
•
•
•

Asahi Holdings (JPY5bn/USD46m), Japan, 5Y original term, SPO provided and rated (GA1) by R&I.
Chongqing Rail Transit (Group) Co.,Ltd. (CNY1.5bn/USD212m), China, 5Y original term, SPO provided by Lianhe
Equator.
Cypark Ref Sdn Bhd (MYR550m/USD131m), Malaysia, 20.7 original term, Tier-1 EB rated by RAM Holdings. –issued in October 2019.
Jiangsu Railway (CNY1bn/USD142m), China, 3Y original term, no third-party review.
Mitsui-Soko (JPY5bn/USD46m), Japan, 10Y original term, rated (Green 1) by JCR.
West Holdings Corporation (JPY200m/USD2m), Japan, 5Y original term, rated (Green 1) by JCR.
White Peak Real Estate Investment (SEK600m/USD64m), China, 3Y original term, SPO provided by CICERO. –issued in July 2019.

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

Green bond outlook – select new deals
Issuer NameCountry

Closing Date

SourceRiskshem AB
Vasakronan (2 deals)

SwedenSweden02/04/2020
02/04/2020

SharesVasakronan
Vasakronan

Wuhan Metro Group Co.,Ltd
Atlantica Yield Plc
Royal Schiphol Group N.V.
E.ON SE
Avangrid
Iberdrola
EDP
SNCF

China
United Kingdom
Netherlands
GermanyUSA
SpainPortugal
France02/04/2020
03/04/2020
06/04/2020
07/04/2020
09/04/2020
14/04/2020
15/04/2020
17/04/2020

GlobeNewswire
Schiphol
Smart Energy International
Fitch
Euromoney
Renewables Now
Explica

For April, we’ve picked out ten deals that have been announced/issued already (see table above). Two of these are
Swedish companies and both longstanding market participants: Vasakronan with two deals and Rikshem AB with one.
Wuhan Metro Group Co., Ltd (China) sought funding for Low-carbon Transport. E.ON SE (Germany) and Iberdrola (Spain)
are scheduled to issue later this month to finance Energy projects.
Due to the ongoing COVID-19 situation, organisations seem to be focusing less on issuing green bonds. Nevertheless,Deutsche Bank (Germany) states in their Non-Financial Report 2019 that they are likely to issue a green bond this year.

Data and references
Repeat issuers in March

6

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

Fannie Mae: USD1.5bn (49 deals)

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 dateReasonHunan Changde Deyuan Investment
Development Company Limited
Nanjing Jiangbei New Area Science andTechnology Development Investment
Group Co.,Ltd
Cutia Empreendimentos Eolicos SA

CNY1.5bn/USD216m

24/03/2020

Working capital

CNY400m/USD57.6m

27/03/2020

Working capital

BRL360m/USD91.5m

29/04/2019

Unlabelled

GS Caltex Corp

IADB

KRW70bn/USD59.9m
KRW60bn/USD51.4m
KRW120bn/USD99.9m
KRW190bn/USD158m
KRW70bn/USD58.3m
USD2bn29/10/2019
29/10/2019
26/09/2019
26/09/2019
26/09/2019
03/04/2020

Not aligned
Not aligned
Not aligned
Not aligned
Not aligned
Sustainability/Social bond

EIB

SEK3bn/tbc

14/04/2020

Sustainability/Social bond

Duerr

EUR115m/USD127.8m

31/03/2020

Sustainability/Social bondCosmo Energy

JPY40bn/USD367.9m

31/03/2020

Sustainability/Social bond

SMBC

USD110m

12/03/2020

Sustainability/Social bond

NIB

EUR1bn/USD1.1bn

06/04/2020

Sustainability/Social bondPfizer

USD1.3bn

27/03/2020

Sustainability/Social bondEurocelltbc

tbc

Discuss this with Alan

Scatec Solar

USD165m

27/03/2020

Sustainability/Social bond

FMO

EUR500m/USD555.8m

27/03/2020

Sustainability/Social bondBasque Government

EUR500m/USD540.1m

06/04/2020

Sustainability/Social bond

African Development Bank

USD3bn03/04/2020

Sustainability/Social bond

Avation

GBP20m/USD26.1m

19/12/2019

not aligned

CAF

USD200m

24/03/2020

Insufficient information

Etihad Airways

GBP100m/USD131.9m

02/01/2020

not aligned

Link REIT

AUD212m/USD145.5m

23/03/2020

Sustainability/Social bond

IFC

SEK3bn/USD317.2m

24/03/2020

Sustainability/Social bondPartners Group

USD409.5m

19/03/2020

Sustainability/Social bondVoith

EUR400m/USD444.6m

19/03/2020

Sustainability/Social bondCatalyst Housing

GBP50m/USD65.5m

19/03/2020

Sustainability/Social bond

SK Energy

7

Wesfarmers

AUD400m/USD241.6m

18/03/2020

Sustainability/Social bond

Covestro

EUR2.5bn/USD2.8bn

18/03/2020

Sustainability/Social bondIndorama

USD255m

18/03/2020

Sustainability/Social bondTianjin Nengyuan Investment

CNY400m/USD56.9m

19/03/2020

not aligned

UPM

EUR750m/USD833.6m

17/03/2020

Sustainability/Social bond

IFC

USD1bn20/03/2020

Sustainability/Social bond

New York City Housing Development
Corporation
Landsvirkjun

USD4.6m
USD52.7m
USD80m18/03/2020
18/03/2020
16/03/2020

Sustainability/Social bond
Sustainability/Social bond
Sustainability/Social bondSuzano Papel e Celulose

USD200m

12/09/2017

Not aligned (regular bond)

China Three Gorges Corporation

CNY3bn/USD432m

05/03/2020

not aligned

Fuyang Yingquan Rural Commercial Bank
Company Limited.
Frasers Property North Gem Trustee Pte.
Ltd. (Frasers Property Limited)

CNY300m/USD43.2m

05/03/2020

not aligned

AUD750m/USD525.4m

17/07/2019

Working capital

Pending
Issuer Name

Amount issued

Issue dateReasonWuhan Metro

CNY1.5bn/USD216m

02/04/2020

Insufficient information

Hongkong and Shanghai Bank

HKD189.1m/USD24.3m

03/04/2020

Insufficient information

Sichuan Chuantou Energy Co.,Ltd.

CNY500m/USD72m

30/03/2020

Insufficient information

Shenzhen Metro Group Co.,Ltd.

CNY1bn/USD144m

24/03/2020

Insufficient information

Omega Geracao SA

BRL308.6m/USD76.3m
BRL150m/USD37.1m
BRL183.4m/USD45.3m
BRL360m/USD89m
INR2.8bn/USD39.2m
INR5.9bn/USD83m
USD100m

24/05/2019
24/05/2019
24/05/2019
24/05/2019
03/01/2019
17/01/2019
31/03/2020

Insufficient information
Insufficient information
Insufficient information
Insufficient information
Insufficient information
Insufficient information
Insufficient information

USD600m
USD1bn
CHF125m/USD128.9m

31/03/2020
31/03/2020
27/03/2020

Insufficient information
Insufficient information
Insufficient information

EUR750m/USD822.5m
EUR750m/USD822.5m
TWD2bn/USD66.1m
ZAR62m/USD4.4m
USD400m

27/03/2020
27/03/2020
27/03/2020
24/03/2020
26/03/2020

Insufficient information
Insufficient information
Insufficient information
Insufficient information
Insufficient information

EUR24m/USD26.7m
EUR24m/USD26.7m
USD94m20/03/2020
20/03/2020
05/12/2019

Insufficient information
Insufficient information
Insufficient information

Huaneng Tiancheng Financial Leasing
Co.,Ltd.
Beijing Capital Polaris

CNY500m/USD71.4m

16/03/2020

Insufficient information

USD300m

18/03/2020

Insufficient information

Guizhou Water Investment Group Co., Ltd.

CNY1bn/USD140.9m

20/03/2020

Insufficient information

IREDA
SBI
Consolidated Edison Company of New York
Hypo Vorarlberg
Engie
Credit Agricole
Nstar Electric Co
LBBW
Tokyo Metropolitan Corp

8

GEPIC Energy Development Co., Ltd.

CNY500m/USD70.5m

20/03/2020

Insufficient information

Credit Agricole CIB

19/03/2020
18/03/2020
09/03/2020

Insufficient information
Insufficient information
Insufficient information

Arizona Industrial Development Authority

IDR39bn/USD2.8m
TRY10m/USD1.7m
IDR2750bn/USD197.9m
USD183.9m

10/03/2020

Insufficient information

New Jersey Educational Facilities Authority

USD174.3m

11/03/2020

Insufficient information

Sumitomo Mitsui Finance

JPY15bn/USD137.9m

12/03/2020

Insufficient information

Prudential Financial

USD500m

10/03/2020

Insufficient information

Vattenfall AB

EUR500m/USD555.8m

12/03/2020

Insufficient information

Standard Bank of South Africa

USD200m

02/03/2020

Insufficient information

Mtr Corp Ltd

HKD300m/USD38.6m

04/03/2020

Insufficient information

Fraser Property Limited

AUD150m/USD104.4m
SGD785m/USD580.4m
EUR500m/USD555.8m

03/06/2019
01/03/2019
11/03/2020

Insufficient information
Insufficient information
Insufficient information

Bank OCBC NISP

Cadent Gas Limited

News and reports links
Content

Source and Link

Barclays sets 2050 net-zero climate policy, covering operations and investments

edie

COVID-19: harnessing the power of collective investor action for change

UN PRIEuroPACE 2.3 - Refinancing EuroPACE loans in the European Fixed Income Market

Climate Bonds

Green Bond Pricing in the Primary Market: H2 (Q3-Q4) 2019

Climate Bonds

Launch of UNEP FI Corporate Impact Analysis Tool & Portfolio Impact Analysis Tool for Banks
Pfizer completes $1.25 billion sustainability bond for social and environmental impact

Green FinancePlatform
PfizerPut clean energy at the heart of stimulus plans to counter the coronavirus crisis

IEA

Siemens Gamesa follows ESG derivatives trend with IRS

Global Capital

Sovereign green bond pricing strong amid demand, says CBIEnvironmental FinanceSpending to counteract coronavirus creates chance to “tilt to green”

EBRD

Stimulus packages could give 'green lining' to coronavirus cloudEnvironmental Finance

The Virus-Hit Global Economy Needs a Green Stimulus

Bloomberg

Thinking ahead: For a sustainable recovery from COVID-19 (Coronavirus)

World Bank Blogs

Transition to a climate bond rating system

Environmental Finance

UPM signs a EUR 750 million revolving credit facility with a margin tied to long-term
biodiversity and climate targets
Von der Leyen: EU budget should be the Marshall plan we lay out together

UPM
Euractiv

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.

9‘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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