Markets Monthly #7 - 13/08/2020: July record 2020 GB issuance USD20bn:
Strongest month for Green Loans: GBs from Georgia & Guernsey: KfW goes big: First
Forestry Conservation and Restoration Certification: Alphabet largest corporate
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Latest Reports

Green Bonds Global State of the Market 2019
The Global Green Bonds State of the Market 2019 report, the first of a new annual series analysing eachcalendar years market developments in detail including global trends in green bond, loan and sukuk
issuance and avenues for market growth.

1July at a glance
Overall, July 2020 issuance added up to USD20bn, bringing total cumulative issuance since market inception to USD891bn.
This is the highest monthly figure seen so far in 2020 – indicating the market is bouncing back from the shocks earlier inthe year.

Multiple green recovery plans are underway with the EU’s Technical Expert Group having published five high-level
principles for Recovery and Resilience. South Korea promises carbon-neutrality facilitated by its ‘Green New Deal’recovery programme. Similarly, UK prime minister Boris Johnson revealed plans to invest GBP350m towards a ‘green,sustainable recovery’.
Elsewhere, the green index space is evolving and expanding. Ninety One and WWF are partnering for a climate debt index
and Solactive is collaborating with ISS ESG to produce the Solactive ISS SDG Leaders Index based on the 17 UN Sustainable
Development Goals.
In look at the month out of a total of 71 deals, 71% came from repeat issuers. Terna (Italy) returned to the market
financing grid infrastructure as well as soil remediation. The Philippines added another green issue to their list with
Manila Water (Ayala Corporation) tapping the market again. After the last PACE ABS in October 2019, Ygrene Energy Fund(GoodGreen - USA) came back with a USD318m deal.
A healthy25 new issuers joined the market in July 2020. Amongst them are Argent (UK) financing a building complex at
Kings Cross in London aiming to reduce carbon emissions by 28% compared to the typical UK home. Proceed allocations to
Climate Change Adaption projects are also becoming more frequent: the latest example is from Quadreal Property Group(Canada), whose bond will partially fund flood defence systems and the structural resilience of buildings.

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The green bond country list also keeps growing: Globalworth Real Estate Investments from Guernsey issued its maiden
green bond in July 2020, as did Georgia Global Utilities (Georgia Capital PLC) form Georgia (see New issuer spotlight).
In total, 26 DM countries contributed to this month’s volume and made up 87% of all July issuance; seven countries from
EM accounted for 10%.
Germany led the country rankings with USD4.4bn, the bulk of which came from repeat issuer KfW. Its EUR3bn (USD3.5bn)
is one of the ten largest deals ever issued and boosted Development Bank volumes to the highest monthly figure of theyear with a total of USD3.6bn.
The Netherlands came in second withfour deals, one of which was NE
Property issuing its market debut: asenior preferred instrument financing
low-carbon buildings.
Financial Corporates also had theirstrongest month in 2020 with
USD4.8bn. One of them was repeat
issuer Hyundai Capital Services:making it the second entity fromSouth Korea to raise debt throughgreen bonds this year.
The only green Sovereign issuance of the month came from France with a tap that added once more to their initialissuance from January 2017 – this time EUR1.6bn (USD1.8bn) - leaving the market still eagerly awaiting more Sovereignissuance from Sweden and Germany this year (see Green bond outlook).
Green loans also reached a new high for 2020 with USD3bn – the second largest monthly amount ever. There were six deals
in total, five of which were from new issuers. M+S (see New Issuer Spotlight) from Singapore issued the second largest loan
recorded with SDG2bn (USD1.4bn) to refinance the Marina One green building projects. Low-carbon buildings made up thelion’s share of project categories financed in July with USD8.4bn, closely followed by Renewable energy with USD6.6bn.
Land use projects added up to USD813m, which is also the largest volume for such projects this year.

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> 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.

Worth reading‘How to Develop a National Green Taxonomy for Emerging Markets - A New World Bank Guide’ – World Bank
…and:
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ECB study shows nearly a third of European banks are not considering financial risks posed by climate change
FSB finds poor data is hindering financial authorities’ efforts to quantify climate risks
US investors – including CalSTRS – push the Fed to act on climate change
IIGCC’s Net Zero Investment Framework opens for consultation

New issuer spotlight - Certified Climate Bonds
PTT Public Company Ltd (THB2bn/USD65m), Thailand, came out with a three-year instrument Certified against theForestry Criteria of the Climate Bonds Standard 3.0. The proceeds will be used to finance and refinance investments into
reforestation of various areas of land throughout Thailand. Annual reports will be made available publicly on the issuer’s
website. These will have information on the allocation of the proceeds, as well as impact reporting. The impact reporting
may include indicators such as amount of reforested land.
This is the first Certification using the Land Conservation and Restoration Criteria, which falls under the Forestry umbrellaof the Climate Bonds Standard.
Rumo SA (USD500m), Brazil, completed its debut green issuance with an eight-year bond Certified against the Low Carbon
Transport Criteria of the Climate Bonds Standard. The proceeds will be used to finance the purchase of new locomotives
and rolling stock which are eligible under the relevant Criteria thresholds. Bond proceeds will also be allocated to
upgrading the related infrastructure to support these trains and the associated railway lines.
Annual reports will be made available publicly on Rumo’s website. The disclosure will include information about how thebond proceeds have been allocated, along with simple quantitative metrics on the investments, such as the length ofrailways upgraded, and the number of trains acquired. This deal is the first Certification related to rail networks in LATAM.
Sparebanken Vest Boligkreditt AS (EUR500m/USD556m), Norway, debuted with a green bond Certified against the Low
Carbon Buildings (Residential) Criteria of the Climate Bonds Standard and maturing in seven years’ time. This covered
bond’s proceeds will be used to finance and refinance mortgages linked to residential buildings in Norway; meeting certain
criteria such as a minimum EPC level of C or above or compliance with the Norwegian building codes of 2010 or 2017.
An annual report with details on the allocation of proceeds will be produced until the proceeds are fully allocated. An
impact report with indicators such as energy use and emissions per floor area will be produced by Multiconsult, a technicalenvironmental consultancy.

New issuer spotlight
Northern Power Grid (NorthEast - GBP300m/USD393m), UK, completed its inaugural issuance with a six-year seniorunsecured bond that settled in June 2020. The instrument benefits from a SPO issued by DNV GL. The bond will finance andre-finance (completed or charged in the last three years) projects in a number of key business areas, including connecting
and/or integrating renewable energy to the grid; improving grid reliability and energy efficiency; smart equipment andbattery replacement; flood mitigation; and earthing system improvements, among others. Biodiversity and wildlife are also
considered through potential allocations into categories such as care for environment and wildlife and the management of
natural habitats.
The company will make allocation and impact reporting available on its website. This will include allocated amounts to eachcategory, financing vs refinancing, year of investment and unallocated proceeds. The impact report will include metrics such4

as capacity of renewable energy production connected in the grid (MW) and estimated annual CO2 emission reduction (intCO2eq). There may also be case studies and information on the methodologies used.
Climate Bonds view: This is the second grid operator from the UK to join the green bond market. Such organisations play apivotal role in the fight against climate change, especially when it comes to connecting and/or integrating low-carbon
electricity generation sources to the grid. This also includes the replacement and improvement of assets to reduce energy
losses and improving the resilience of the grid.
An increasing number of grid providers are joining the green bond market globally. This year alone we saw maiden issuancesfrom National Grid (UK), Red Eléctrica (Spain) and Statnett SF (Norway). This shows issuers are recognising the potential ofsuch projects in the fight against climate change. We hope this will encourage more grid companies to issue green bonds tofinance these crucial climate solutions.

West Berkshire Council (GBP1m/USD1m), UK, had its debut issue with a green instrument maturing in five years. West
Berkshire Council is the local authority of West Berkshire in Berkshire, Southern England. The funds will go towards solar
panel installations on five council-owned buildings such as Greenham Common and local schools. There is an environment
strategy in place to make the district carbon neutral by 2030. This is the UK's first local government green bond.
Climate Bonds view: This bond was issued under a Community Municipal Investment framework with an ethical investment
platform. It is likely that there will be more such deals in the future with more UK local authorities aiming to green theeconomy. The scheme is made for crowdfunding and is open to public: minimum investments start from GBP5. This helps
to make green bond investing more accessible to individuals and significantly broadens the set of potential investors. We
welcome such innovative programmes and hope to see more in the future.

Reginn HF (ISK5bn/USD41m), Iceland, issued its first green bond with a 30-year original tenor. There are five categories
eligible for financing and refinancing: Green buildings, renewable energy, energy efficiency, pollution prevention andcontrol, and clean transportation. Reginn states that it is likely that a vast majority of the funds will be used for refinancing
existing buildings without a defined look-back period. The green buildings category is expected to account for 90% with lessthan 5% going to energy efficiency and clean transportation.
Explicitly excluded from financing are fossil-based activities, nuclear energy, weapons and defence, along withenvironmentally negative resource extraction, gambling, and tobacco.
There will be allocation as well as impact reporting on an annual basis on the green financing website until maturity of thebonds. The report will include the amount of financing as well as the assets in the pool including examples of assets, theshare of financing vs refinancing and unallocated proceeds. It will also include amongst other impact indicators the share of
renewable energy used, type and level of certification, energy performance, CO2 scope 1 and 2 emissions as well as water
intensity.
Climate Bonds view: This marks the first non-financial corporate from Iceland to issue a green bond, as well as the second
largest issuance from the country. None of the Icelandic green bonds issued so far have come with allocations into green
buildings that match Reginn’s. It is great to see the greening of the housing market in Iceland and the encouraging signals
toward more issuance from non-financial corporates.

Georgia Global Utilities (Georgia Capital PLC - USD250m), Georgia, entered the market with a five-year private placement
where proceeds will be earmarked for capital expenditure in upgrading water supply and sanitation in the capital, Tbilisi,
and nearby municipalities, and to refinance existing loans of renewable energy and water operations.
The issuer intends to publish an annual allocation and impact report on its website until maturity.
Climate Bonds view: Climate Bonds hails the first green bond from Georgia. This inaugural green note will contribute to a
low-carbon and resilient economy in the country, which is still heavy reliant on fossil fuels in its energy supply and is sensitive
to extreme climate events, as it is home to the Caucasus mountain range. Bond issuance will continue to play a key part infinancing large-scale infrastructure projects by the private and public sectors towards a greener and sustainable future.

5M+S (SGD2bn/USD1.4bn), Singapore, took out its inaugural green loan for the office and retail components of the Marina
One complex. Marina One is LEED Platinum certified and has achieved the Building and Construction Authority Green Mark
Platinum rating.
Climate Bonds view: To fund sustainable projects, borrowers can explore both syndicated loans and bonds for long-term
debt financing. The former is arguably more flexible and is usually signed based on relationships between lenders andborrowers, while the latter can raise large amounts from investors also in public markets. Securing a large green loan for acertified green building by M+S is a success story for green financing. This deal marks the second largest loan ever signed,
and the largest to date by an Asian real estate company.

New issuers continued...
Public Sector
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Brick Township Municipal Utilities Authority (USD13.3m), USA, 16.4Y original term, no third-party review.
City of Lawrence (USD12m), USA, 29.5Y original term, assured by BAM GreenStar.
Hypo Neo (EUR500m/USD564m), Austria, 4Y original term, SPO provided by ISS-oekom – issued in June 2020.
Maryland Stadium Authority (USD34m), USA, 26.8Y original term, no third-party review.
San Diego County Water Authority (USD283m), USA, 13.8Y original term, no third-party review.
The County of Dupage (USD51m), USA, 26.8Y original term, no third-party review.
Town Of Schererville, Lake County (USD3.4m), USA, 9.5Y original term, assured by BAM GreenStar.
Triview Metropolitan District (USD14.14m), USA, 30.5Y original term, assured by BAM GreenStar – issued in May
2020.
Washington Township Municipal Authority (USD5m), USA, 11.6Y original term, assured by BAM GreenStar.

Financial Corporates
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Comforia Residential REIT (JPY1.5bn/USD14m), Japan, 10Y original term, SPO provided by Sustainalytics.
CIFI Holdings (USD300m), China, 5.3Y original term, SPO provided by Sustainalytics.
Globalworth Real Estate Investments (EUR400m/USD445m), Guernsey, 6Y original term, SPO provided by
Sustainalytics.
NE Properties (USD556m), Netherlands, 7Y original term, SPO provided by Sustainalytics.
NTT Finance Corporation (USD375m), Japan, 3Y original term, SPO provided by Sustainalytics – issued in June
2002.
Uniqa Insurance Group (EUR200m/USD222m), Austria, 15.3Y original term, SPO provided by Sustainalytics.

Non-Financial Corporates
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Arclight Solar (USD48m), Spain, rated E1/80 by S&P Global Ratings – issued in June 2020.
Axpo Holding (USD137m), Switzerland, 3Y original term, SPO provided by ISS-oekom.
Enexis Holding NV (EUR500m/USD565m), Netherlands, 12Y original term, SPO provided by ISS-oekom – issued inJune 2020.
Quadreal Property Group (CAD350m/USD268m), Canada, 10Y original term, SPO provided by Sustainalytics.
Northern Power Grid (NorthEast) (GBP300m/USD393m), UK, 6Y original term, SPO provided by DNV GL – issuedin June 2020.

Loans
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Argent (GBP69m/USD90m), UK, no third-party review.
Concert Properties (CAD71.5m/USD54.9m), Canada, no third-party review.
Copenhagen Infrastructure Partners (EUR380m/USD429.5m), Denmark, no third-party review.
UOB (SGD120m/USD89m), Singapore, 3Y original term, no third-party review.

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

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Green bond outlook – selected deals
Issuer NameCountry

Closing Date

SourceChina Construction Bank Corp (Hong Kong
Branch)Alphabet Inc.
Bayerische Landesbank
Brookfield Renewable
JSC Entrepreneurship Development Fund
“Damu”MTR Group, Ltd.
Reconcept GmbH
Visa Inc.

China

04/08/2020

NASDAQ

USA
Germany
CanadaKazakhstan

05/08/2020
13/08/2020
13/08/2020
11/08/2020

Edie
Bayern LB

Hong Kong
GermanyUSA

18/08/2020
24/08/2020
17/08/2020

The Asset

Saur Energy International
AIFC

Investment CheckBusiness Wire

Google parent Alphabet has issued a USD5.8bn sustainability bond, which is believed to be the largest corporate
sustainability bond in history. This week, digital payment company Visa became the first in its industry to issue a green
bond (USD500m) to finance projects across multiple categories, including initiatives to foster sustainable consumer
behaviour. The company also appointed its first ever Chief Sustainability Officer.
In addition to other deals that were issued recently or will settle soon (see table above), Banco Sabadell launched aframework for the issuance of bonds linked to sustainable development goals. CPI Property Group (Czech Republic) may
return to the green bond market with its plans to issue green bonds in Hungary.

Sovereign Green Bond Club
The plans of more potential members to the Sovereign Green Bond Club are beginning to materialise. Sweden is getting
ready to issue sovereign bonds to a potential total of SEK20bn (USD2.2bn) with original terms between seven and 10 years
to finance government expenditures towards meeting the country’s environmental and climate objectives. Longstanding
member France is considering to issue another green bond in 2021 after tapping its first issuance from 2017 multiple
times. Thailand is also exploring the option of offering up to THB30bn (USD966m) of green bonds, potentially as soon as
this month – August 2020.

Data and references
Repeat issuers in July7

Repeat issuers: January to June 2020 (not previously included)
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AC Energy: USD60m - June 2020
Asian Development Bank: HKD115m/USD14.8m - May 2020
City of Gothenburg: SEK1.5bn/USD158.6m - June 2020 (2 deals)
Credit Agricole CIB: USD80.6m - issued from February to June 2020 (12 deals, 5 currencies)
Deutsche Hypo: EUR10m/USD11.1m - June 2020
Dutch State Treasury Agency: EUR214m/USD237.9m - June 2020
Entra ASA: NOK450m/USD50.8m - Febuary 2020
Fabege AB: SEK500m/USD52.9m - June 2020
Fannie Mae: USD115.6m - June 2020 (5 deals)
LBBW Landesbank Baden-Wuerttemberg: EUR48m/USD53.8m - June 2020 (2 deals)
LoanPal Solar Loan 2020-2: USD492.5m - June 2020 (2 deals)
Mill City Solar Loan 2020-1: USD161.622m - June 2020
Mosaic Solar Loan Trust 2020-1: USD279.54m - June 2020
Niagara Mohawk Power Corporation (National Grid): USD600m - June 2020
NorgesGruppen: NOK650m/USD73.3m - April 2020Societe Generale: EUR1bn/USD1.1bn - Febuary 2020
Sunnova Helios IV: USD158.492m - June 2020
Sunnova Sol: USD412.5m - Febuary 2020
Swedish Export Credit: SEK500m/USD52.9m - April 2020
Taesa (Transmissora Alianca de Energia Eletrica): BRL300m/USD73.9m - January 2020
Taesa (Transmissora Alianca de Energia Eletrica): BRL450m/USD110.9m - April 2020
Telia Co: SEK750m/USD79.3m - June 2020
Vasakronan: SEK200m/USD21.1m - June 2020
Vattenfall: EUR500m/USD555.8m - March 2020

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 dateReasonLBBWEUR1bn/USD1.1bn

18/02/2020

Social/sustainability bondShouguang Huinong New Rural
Construction Investment
Development Co., Ltd.

CNY600m/USD86.4m

08/07/2020

General operating expenditure

Pending
Issuer Name

Amount issued

Issue dateReasonShangrao City Construction
Investment Development Co. Ltd.
BKS Bank

CNY1.7bn/USD244.8m

29/07/2020

Insufficient information

EUR3m/USD3.3m

31/07/2020

Insufficient information

County Of Meade, Kentucky
Pattern Energy Operations

USD81.3m
USD81.3m
USD700m

27/07/2020
27/07/2020
28/07/2020

Insufficient information
Insufficient information
Insufficient information

Maxeon Solar Technologies

USD200m

17/07/2020

Insufficient information

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Asian Development Bank

USD50.4m

22/07/2020

Insufficient information

Vestel Elektronik Sanayi ve Ticaret AS

TRY50.4m/USD8.5m

09/07/2020

Insufficient information

Modern Land China

USD250m

13/07/2020

Insufficient information

Atlantica Sustainable Infrastructure

USD100m

17/07/2020

Insufficient information

Komatsu Ltd

JPY10bn/USD92m

16/07/2020

Insufficient information

Seiko Epson Corp

BBVA

JPY40bn/USD367.9m
JPY10bn/USD92m
JPY20bn/USD183.9m
EUR1bn/USD1.1bn

16/07/2020
16/07/2020
16/07/2020
15/07/2020

Insufficient information
Insufficient information
Insufficient information
Insufficient information

KIMCO Realty

USD500m

13/07/2020

Insufficient information

FortisBC Energy Inc

CAD200m/USD153.6m

13/07/2020

Insufficient information

Arboretum

EUR200m/USD222.3m

02/07/2020

Insufficient information

Siemens Gamesa Renewable Energy

EUR172bn/USD0m

Tbc

Insufficient information

NMB Bank

USD25m30/06/2020

Insufficient information

Credit Agricole

USD25m08/07/2020

Insufficient information

Henkel

USD70m03/07/2020

Insufficient information

Synthesis Analytics

GBP28.1m/USD34.5m
USD14.8m

14/05/2020
14/05/2020

Insufficient information
Insufficient information

Metropolitan Life Global Funding 1

USD750m

02/07/2020

Insufficient information

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.

Registrations have just opened for Climate Bonds Conference 8-10 September 2020! All online. More information here.

‘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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