Market Blog #36 - 21/11/19: 1st GB from Ukraine: 2nd GB from Russia: Investor Survey:
GB Gossip, reading list and more!
Don’t miss!
Webinar! Climate Bonds first European Investor Survey. Results in detail. Wed, 27 Nov 2019, 11:30 – 12:30 GMT.
Register here.

Green Bond European Investor Survey
In what is Climate Bonds Initiative’s first green bond investor survey in a planned series of surveys, wesurveyed 48 of the largest Europe-based investment managers.
The survey found that investors are looking for green transition opportunities and want deals with highclimate impact as well as highly value green credentials and transparency. Policy is a key driver toinvestment and there is a widespread lack of supply.

Brazil GIIO
The Green Infrastructure Investment Opportunities - Brazil 2019 report lists the current state of theBrazilian sustainable finance market and the progress of green infrastructure projects in Brazil.
The report analyses investment opportunities for green infrastructure in the country and provides
samples of green and/or potentially green projects in the renewable energy, low carbon transport, water
infrastructure and waste management for power generation.
Available in English and Portuguese.

China Q3 newsletter
China Green Bond Market Newsletter Q3 2019 gives an overviewof Chinese green bond issuance in Q3. Both global and Chinese
green bond issuance has increased significantly in Q3 compared tothe corresponding quarter in 2018.
USD5.8bn of Q3 volume from Chinese issuers is in line withinternational green bond definitions. Government-backed entities
had the strongest quarter on record. Financial corporates remain
prolific issuers, despite not being at the top this quarter.
As the largest sector for bonds aligned with Climate Bonds
definitions, Transport’s share rose to 47% of issuance volume in
Q3. Water (22%) and Renewable Energy (19%) followed.
The newsletter also covers a discussion on sustainable waste
management and a policy update.
Available in English and Chinese.

Green bond deals across the globe: 1 Jan – 15 Nov 2019

At a glance
Issuance from 1 November to 15 November reached USD7.1bn, bringing the total 2019 green bond volume toUSD219.8bn. Overall cumulative GB issuance since 2007 is now at USD737bn.
So far this month issuance from DM accounts for
85% with most of the deals and the largest volume
coming from Germany, the USA and France.
The USA saw five new issuers with two financial
corporates coming to the market: PNC Financial
Services Group (USD650m) and Duke Realty(USD400m) which were the largest US deals.
There were 3 EM deals: DTEK Renewables(EUR325/USD358), the first issuer from Ukraine,
Shui On Land (USD300m), China, and Center-invest
Bank (RUB250/USD4m), the first financial
corporate and second green bond issuer fromRussia.
Overall, so far only 51% of the issuance inNovember has come 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
Public sector
Caisse Française de Financement Local (Caffil) - Société de Financement Local (SFIL) (EUR750m/USD827m), France,issued the first green covered bond in France. The 10Y instrument will finance or refinance new and existing projects
that are aimed at improving French social infrastructure and environmental protection. Eligible categories are cleantransportation, sustainable water and sanitation management, waste management and valuation, energy efficiency,
green buildings and renewable energy.
Post-issuance reporting will be made available on the SFIL website on an annual basis, until full allocation of proceeds.
The allocation report will contain the total amount of proceeds allocated to each green bond by eligible green loan
category and the total number of eligible green loans associated with each green bond. The impact report may bepresented in generic terms due to the nature of the security as this bond consists of a number of underlying loans.
Climate Bonds view: The breadth of projects fits well with public sector investment in green infrastructure. SFIL Groupalso issued a social bond in March. SFIL works with La Banque Postale, a green bond issuer in its own right and one of
the largest French investment groups. Green loans to French local authorities are originated by La Banque Postale andthen transferred to SFIL to be refinanced through the issuance of green bonds. This allows SFIL to finance the French
public sector at scale.

More issuance in the public sector:• Benton Washington Regional Public Water Authority of the State of Arkansas (USD59m), USA, 24.9Y originalterm, assurance provided by BAM GreenStar.
• Mountain Regional Water Special Service District Summit County (USD26m), USA, 15.1Y original term,assurance provided by BAM GreenStar.
• Union County Improvement Authority (USD50m), USA, 24.9Y original term, no third-party review. (October2019)

Financial corporates
Center-invest Bank (KB Tsentr-Invest PAO) (RUB250m/USD4m), Russia, issued a green bond maturing in one year.
This marks the second green bond issued in the Russian market. It is also the first green bond by a Russian financial
corporate and the first RUB-denominated green bond by a Russian entity. The proceeds will finance loans for a rangeof renewable energy, energy efficiency and clean transportation projects, as listed in the SPO.
The green bond register will be used as a basis for reporting. Information on the projects financed by the green
bond’s proceeds will be included in the annual environmental report of the bank as a separate annex.
Climate Bonds view: Bank issuance is lacking in many countries, despite being one of the most powerful ways to increase
green financing to projects at scale. This is therefore a positive development in a country with a currently very small green
bond market, albeit with just a one-year term. We would hope that Center-invest Bank adds detail to its reporting to alignwith market best practice but acknowledge that reporting is expected to be minimal given the extremely short term.

More deals issued by financial corporates:• Duke Realty (USD400m), USA, 10Y original term, no third-party review.
• PNC Financial Services Group (USD650m), USA, 5Y original term, SPO provided by Sustainalytics.

Non-financial corporates
DTEK Renewables (EUR325m/USD358m), Ukraine, issued its first green bond maturing in 5 years’ time. This is the firstgreen bond from a Ukrainian issuer. Its bond will finance new or existing projects with the aim to increase the production,connection and distribution of onshore wind and solar power in Ukraine.
An allocation report will be made available on the company’s website on an annual basis until the proceeds are fullyallocated. This includes a list of eligible projects, the amounts of financing and refinancing as well as the remainingbalance. There will also be an impact report with relevant metrics such as installed power capacity and annual renewableelectricity generated. In addition to that, a third-party auditor will verify allocation and impact reporting.
Climate Bonds view: It is encouraging to see more organisations from emerging markets printing green bonds especiallyconsidering the size of this inaugural issue. The Ukraine’s energy mix is dominated by fossil fuels – only a fraction comesfrom renewable energy. This inaugural issuance represents a step in the right direction which hopefully encourages moreinvestments and issuance in the renewable energy space.

More deals issued by non-financial corporates:• Grenergy Renovables (EUR22m/USD24m), Spain, 5Y original term, SPO provided by Vigeo Eiris.
• Porterbrook (GBP150m/USD194m), UK, SPO provided by DNV GL (not publicly available).
• Shui On Development (Holding) Limited (USD300 m), China, 4Y original term, SPO provided by Sustainalytics.
• Stedin Holding NV (EUR500/USD550m), Netherlands, 10Y original term, SPO provided by ISS-Oekom.
Visit our Bond Library for more details on October deals.

Repeat issuers 1 – 15 November•••••••••••••

Berlin Hyp: EUR500m/USD558.2m
CABEI (Central American Bank for Economic Integration): USD375m
City of Decatur: USD5m
Deutsche Kreditbank (DKB): EUR500m/USD553.8m
District of Columbia Water: USD104.01m
Fastighets AB Balder: SEK500m/USD51.9m and SEK500m/USD52.2m
IFC (International Finance Corporation): USD4.91m
KfW: EUR1bn/USD1.1bn
Massachusetts Water Resources Authority: USD570.575m
New York MTA: USD241.745m
New York State Housing Finance Authority: USD87.3m
San Francisco Bay Area Rapid Transit (BART): USD80.3m
Sekisui House REIT: JPY5bn/USD46.2m

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

Alpha Trains: EUR340m/USD377.3m - October 2019
EBRD: EUR750m/USD820.5m - September2019
Entra ASA: NOK200m/USD22m - October 2019
Greenko: USD85m - October 2019
KfW: NOK2bn/USD218.8m - 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

Suzhou high tech tram Group Co.,Ltd
Housing New Zealand

CNY300m/USD42.9m

08/11/2019

Excluded (Not aligned)

NZD900m/USD572.6m

08/11/2019

Excluded (Sustainability/Social bond)Royal Bank of Scotland

EUR750m/USD825.5m

15/11/2019

Excluded (Sustainability/Social bond)Nanjing Metro Group Co., Ltd.

CNY2bn/USD282.1m

19/09/2019

Excluded (Not aligned)

China Three Gorges Corporation

CNY2bn/USD279.2m

29/08/2019

Excluded (Not aligned)

Mori building

JPY15bn/USD137.7m

14/11/2019

Pending (Waiting for more info)

SKF

EUR300m/USD330.2m

15/11/2019

Pending (Waiting for more info)

Owens-Illinois Group

EUR500m/USD551.5m
EUR500m/USD551.5m
EUR1bn/USD1.1bn
EUR1bn/USD1.1bn
EUR50m/USD55.1m

12/11/2019
12/11/2019
15/11/2019
15/11/2019
13/11/2019

Pending (Waiting for more info)

Shangyu District Shaoxing Municipal
Water Group Co., Ltd.
Agricultural Development Bank ofChina
Porterbrook

CNY800m/USD800m

31/10/2019

Pending (Waiting for more info)

CNY2.5bn/USD2.5bn

06/11/2019

Pending (Waiting for more info)

GBP100m/USD129.4m

01/11/2019

Pending (Waiting for more info)

Guangxi Beibu Gulf Bank Co., Ltd.

CNY2bn/USD283m

15/10/2019

Pending (Waiting for more info)

China Construction Bank Corporation

CNY4.4bn/USD624.4m

29/10/2019

Pending (Waiting for more info)

Linköping Stadshus AB (Linköping
Municipality)

SEK500m/USD51.9m

22/10/2019

Pending (Waiting for more info)

AppleEBRD

Green bonds in the market•
••
•
•
•
•

KommuneKredit – closed 19 November
Orsted – closed 19 November
BNG Bank – closed 20 November
CAF – closed 20 November
Kommuninvest – closed 20 November
ANZ Bank – closed 21 November
T Corp – closed 21 November

Pending (Waiting for more info)
Pending (Waiting for more info)•••National Housing Finance and Investment Corp (NHFIC) – closing 27 November
Renewable Japan – closing 30 November
Swiss Life Holding – closing 6 December

Investing news
MSCI has launched two series of provisional climate indices designed to meet the minimum standards for the “EU
Climate Transition benchmark” and “EU Paris-aligned benchmark”.
The Monetary Authority of Singapore is planning to launch a USD2bn programme aiming to accelerate the growth ofSingapore’s green finance ecosystem. The Green Investments Programme will fund public market investment
strategies with a green focus and asset managers which are committed to strengthen green finance activities.

Green bond gossip
Denmark’s central bank is considering issuing green bonds targeted towards funding its goal to reach a 70% carbon
emissions reduction by 2030.
The Islamic Development Bank has announced it will launch its a green bond and has put a framework in place.
The Egyptian Financial Regulatory Authority (FRA) is planning to issue green bonds in 2020.
The city of Kyoto (Japan) is considering issuing a green bond that will help meet funding toward the UN’s sustainable
development goals.
Portland, Maine (USA) is planning to issue its first airport green bond deal.
Prada is taking out a EUR50m (USD43m) sustainability loan which allows alteration on the interest rate in the case ofachieving certain eco-friendly objectives.
Nidec (Japan) is planning to issue a USD900m bond with proceeds going towards the development of electric-vehicle
motors.
Neo Industrial, Finland, a cable manufacturer, may issue a USD10-15m green bond.

Readings & reports
The Nigeria Green Bond Market Development Program, a joint partnership launched in June 2018 between FMDQ
Securities Exchange (FMDQ), Climate Bonds Initiative and Financial Sector Deepening, Africa (FSD Africa) has released
its first progress report.
According to a research paper published by the London School of Economics and Social Science, only 13 out of the132 largest energy companies have plans to reduce their GHG emissions to net zero.
MSCI discusses the monetary damage that climate change can cause. It points out the difficulties quantifying the riskof climate change on assets, infrastructure, businesses and supply chains and examines how corporates areapproaching this.
Climate economics researchers have often underestimated the costs of damages resulting from climate change.
That’s the conclusion of a new report written by a team of climate and Earth scientists and economists from theEarth Institute at Columbia University, the Potsdam Institute for Climate Impact Research, and the Grantham
Research Institute on Climate Change and the Environment.
Bloomberg outlines the challenge of the green bond market to find eligible projects and assets to fund. They
describe the rise of alternative labels such as transition bonds and sustainability linked bonds which can also be usedby organisations which may not be able to issue green bonds.

Responsible Investor profiles sustainable investment developments in Kenya including the nations inaugural green
bond from Acorn, arising from the multi-partner Kenya Green Bond Program.

‘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 aninvestment 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.