Market Blog #35 - 07/11/19: Over $22bn GB in October: First GB from Greece - Certified:
Conf2020 Registrations open: GB Gossip, reading list and more!
Highlights:●

Monthly GB issuance for October reached USD22.8bn●

Year to date issuance passes USD200bn mark- USD230-250bn in sight for end December?

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Greece: First Certified Climate Bond against Wind Criteria by Terna Energy Finance

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Registrations will open soon for Climate Bonds Conference2020, 3-5 March, London. Conference2020 website
here.

Green bond deals across the globe: 1 Jan – 31 Oct 2019

> The full list of deals here.

October at a glance
Monthly issuance volume reached USD22.8bn in October, up from USD16.1bn in Q3 2018. This translates in a year-on-year
growth of 41% and brings total 2019 issuance to USD210.8bn, well past the USD200bn mark, with overall cumulative GB
issuance since 2007 now at USD728bn.
Climate Bonds estimate for 2019 annual issuance is between USD230bn to 250bn.

The monthly year-on-year growth was mainly driven by a much larger volume coming from EM: USD5.2bn this year
compared to USD1bn in October 2018. Chinese issuers accounted for USD3.4bn and the market saw green bonds fromnine EM countries compared to six in October 2018. Large deals came from UAE (USD600m) and India (USD452.5m).
Developed markets accounted for two thirds (69.1%) of October issuance, fuelled by deals from the USA (USD2.7bn),
France (USD2.4bn) and Ireland (USD2.2bn). There were transactions from Luxembourg (USD1.2bn), Austria (USD52m) andFinland (USD22m), countries that don’t often appear in monthly country rankings. Monthly volumes from German and UK
issuers were much lower than October 2018, down 82% and 59% respectively.

Note: Green MBS issuance from Fannie Mae has not been included in October figures yet.

As in September, Financial Corporates accounted for the largest portion of overall monthly volume: their bonds made up
31.7% of total issuance in October, up by USD4.4bn from USD2.8bn in October 2018. This was driven by two large deals
from Credit Agricole (EUR1bn/USD1.1bn), France, and Banco Santander (EUR1bn/USD1.1bn), Spain, as well as five deals
from China and four deals from Japan.
18 deals came from Non-Financial Corporates from a variety of countries and variety of sizes with a total of USD4.9bn.
Sovereign issuance in October came from a EUR2bn (USD2.2bn) tap of Ireland’s green sovereign bond.
The Green Loans market marked the second largest figure this year with USD1.4bn comprised of four deals from
Mapletree Commercial Trust Management (SGD670m/USD491m), Singapore, repeat issuer Alpha Trains

(EUR340m/USD377m), Luxembourg, Mobilinx (CAD488m/USD371m), Canada, and Cubico Sustainable Investments(EUR173m/USD193m), UK.

Volume by use of proceeds
25

Unalloc. A&R
ICT

20

Industry
Land Use15

Waste
USD Billion

10

Water
Transport

5

Buildings
Energy0
2019

Funds raised in October were allocated mainly to
Energy through 41 deals (out of a monthly total of 71).
In 17, the proceeds financed only renewable energy.
The largest deals came from Banco Santander(EUR1bn/USD1.1bn), Rabobank (EUR750m/USD832m)
and MidAmerican Energy (USD600m).
Buildings allocations more than doubled, rising from
USD3bn in October 2018 to USD6.2bn. Notably, Fannie
Mae issuance for October 2019 has not been included
yet, so the final growth figure is expected to be evenhigher.
Other sector allocations were similar compared to
October 2018.

2018> 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.

Certified Climate Bonds
Terna Energy Finance (EUR150m/USD167m), Greece, issued its inaugural 7-year green bond. It is Certified against theWind Criteria of the Climate Bonds Standard and is the first green bond from a Greek issuer. It is also the first Certification
linked to wind farms in the US: the proceeds will be used to finance (60%) and refinance (40%) the development of 14 sites
across Greece and 1 in the US.
Allocation reporting will be available to investors within one year after bond issuance. The issuer intends for all theproceeds to be allocated within this first year. There will also be quantitative details on the wind projects in the annual
publicly available in Corporate & Social Responsibility (CSR) reports.

Sparebanken Sør Boligkreditt (EUR500m/USD555m), Norway, came to the market with a 7-year covered bond,Certified against the Low Carbon Buildings Criteria of the Climate Bonds Standard. The proceeds will finance and refinancemortgages on residential buildings in Norway, which comply with certain Norwegian building codes and labels.
A report with details on the allocation of proceeds will be produced annually 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.

New issuers
Public sector
Greene Township Municipal Authority Franklin County, Pennsylvania (USD20m), USA, joined the green bond market witha 13.1-year US Muni. This deal will refinance outstanding sewer revenue bonds and is assured by BAM GreenStar. There is
no reporting commitment stated.
Climate Bonds view: This is the fifth bond issued by a Municipality from the Keystone State and the first to obtain BAM
GreenStar assurance. We do encourage reporting and transparency on proceeds allocation.

Financial corporates
AEON REIT Investment Corp (JPY3.3bn/USD30.4m), Japan, took out a 3-year term loan that was rated Green 1 by JCRA.
The proceeds will go towards investments in buildings that have acquired or will acquire environmental certifications

within the top three categories of regional, national or international certification levels. Funds could also be allocatedtowards renovations aimed at improving environmental aspects such as energy efficiency and water consumption.
There will be a detailed allocation report with information such as the status of funds for Green Finance. Certificationlevels will be disclosed annually as well as total energy consumption and GHG emissions of the properties.
Climate Bonds view: Another Japanese REIT joining the market benefiting from an SPO. It is good to see ambitious
certification targets for the buildings that are being financed.

Non-financial corporates
ASE Industrial Holding Company (USD300m), China, issued its first green bond maturing in 3 years’ time. The proceeds
will primarily finance three projects in Gaoxiong, of which two are building projects and one is a water-related project. The
buildings projects target energy efficiency improvements, and one of them is designed with the intention to apply for the
EEWH green building label. There is no reporting commitment stated and no third-party review.
Climate Bonds view: We are pleased to see that ASE Technology Holding provides information about the project they arefinancing and the relevant environmental impacts such as the amount of carbon emission reductions. We encourage ASE
to continue to disclose this type of information post-issuance.

CPI Property Group (EUR750m/USD831m), Luxembourg, came to market with a 7.5-year senior unsecured bond. The
eligible categories for allocations are certified buildings, energy efficiency, renewable energy, environmentally sustainable
management of living natural resources and land use.
CPI Property Group will publish an allocation report annually on their website until proceeds are fully allocated. This will
include the allocation of the net proceeds as well as information such as eligible projects financed, unallocated proceeds,
remaining balance and buildings’ status. There will also be an impact report where feasible with different metrics for eachcategory such as level of certification by property or annual GHG emissions reduced/avoided.
Climate Bonds view: As the fourth issuer from Luxembourg coming to the market, this is the largest bond issued so far bya Luxembourg company and the first to indicate intentions to finance projects in the Land Use space. We do encourage
issuers to obtain an external review.

Cubico Sustainable Investments (EUR173m/USD193m), Italy, had its inaugural issuance with a project finance bond thatwill refinance three wind projects: a 99 MW portfolio located in Campania, Apulia and Basilicata. No external review was
obtained nor any commitment to disclosure after issuance was stated.
Climate Bonds view: Large sector-focused investment groups are able to direct significant amounts of finance towards
climate-friendly projects. As a renewable energy developer, most – if not all – of Cubico’s projects would be eligible to be
funded by green bonds and/or loans, so we hope it will choose to pursue more labelled instruments.

Guangdong Electric Power Development Company (CNY200m/USD28m), China, had its debut issuance with a 3-year
green bond. The proceeds are intended to go towards raising funds for green project construction, supplemented green
project supporting working capital and repaying green project loans amongst others. There is no third-party review andreporting commitment stated.
Climate Bonds view: The issuer mainly generates capital for solar projects. We are pleased to see the issuer will furnish an
independent post-issuance report each year from Lianhe Equator Environmental Impact Assessment Co., Ltd. However, we
would like to see more detailed information on the proposed projects. We also hope that the issuer will disclose the use ofproceeds information each year after issuance and put in place a comprehensive reporting system.

Mapletree Commercial Trust Management (SGD670/USD491m), Singapore, took out its first green loan that will partiallyfinance the REIT’s acquisition of Mapletree Business City. This is a project that was designed with environmentally friendly

features and has been certified BCA Green Mark Platinum, BCA Universal Design Mark Platinum Award and LEED Gold.
There is no third-party review and no reporting commitment stated.
Climate Bonds view: It’s encouraging to see the first Singaporean REIT joining the Green Bond market. So far, the REIT
green bond market is dominated by Japanese issuers. We hope issuers from other countries will be encouraged to follow.

Mobilinx Hurontario General Partnership (CAD751m/USD572m), Canada, joined the green bond market with a 35-year
senior secured project finance bond rated E1/87 by S&P Global Ratings. The proceeds will finance part of the Hurontario
Light Rail Transit (LRT) project, which involves 18km of a new double-track system from Mississauga to Brampton in
Ontario. The project will include LEED (silver) certified operations, maintenance, and storage facility (OMSF) buildings.
Metrolinx plans to complete a one-time post in-service business case for Hurontario LRT, to include an analysis of GHG
emissions – approximately three years after completion of construction.
Climate Bonds view: Investments in mass public transport, especially in urban environments, are urgently needed. We arepleased to see another Canadian public authority backing such a project via a long-term concession, following pastissuances by the Province of Ontario itself (a small portion of which actually financed this project) and several other public
transport investments in other Canadian cities. As a PPP, this is also an example of a multi-stakeholder approach, showing
how private entities can be leveraged to deliver projects of a public good nature.
Visit our Bond Library for more details on October deals.

Repeat issuers 18 – 31 October
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ADB (Asian Development Bank): EUR750m/USD834.2m
Alpha Trains: EUR340m/USD377m
Argosy Property: NZD100m/USD63.5m
China Construction Bank (Hong Kong): USD1bn
China Construction Bank (Luxembourg): EUR500m/USD557.8m
City and County of San Francisco: USD247.81m
City of Malmo: SEK750m/USD77.4m
Credit Agricole CIB: EUR1bn/USD1.1bn
Engie: EUR900m/USD1bn
Jernhusen AB: SEK150m/USD15.4m
Majiid Al Futtaim Properties LLC: USD600m
Massachusetts Clean Water Trust: USD191.6m
Mobilinx Hurontario General Partnership (Mobilinx) - Infrastructure Ontario: CAD487.8m/USD371.4m
Rabobank: EUR750m/USD832.4m
Raiffeisen Bank International AG: CZK1.2bn/USD52.1m
San Francisco Bay Area Rapid Transit (BART): USD80.3m
Shanghai Pudong Development Bank: USD300m
Tokyo Metropolitan Government: JPY5bn/USD45.9m
Tokyo Metropolitan Government: JPY5bn/USD45.9m
Tokyo Metropolitan Government: JPY5bn/USD45.9m
Tokyo Metropolitan Government: JPY5bn/USD45.9m

Repeat issuers: January – October 2019 (not previously included)
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Advanced Soltech Sweden AB (SolTech Energy Sweden AB): SEK51m and EUR6.85m (USD12.7m)- September 2019
Advanced Soltech Sweden AB (SolTech Energy Sweden AB): SEK27.5m and EUR7.75m (USD11.5m)- May 2019
Advanced Soltech Sweden AB (SolTech Energy Sweden AB): SEK131.8m/USD14.6m - January 2019
Greenalia Wind Power Eolo: EUR22m/USD24.5m - August 2019
Greenalia Wind Power Eolo: EUR61.2m/USD68.1m - July 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

Caoxian Shangdu Investment Co.,Ltd.
Los Pelambres

CNY800m/USD113.2m

28/10/2019

Excluded (Not aligned)

USD875m

11/02/2019

Excluded (Not aligned)

Instituto De Crédito Oficial

EUR500m/USD556m

31/10/2019

Excluded (Sustainability/Social bond)Celulosa Arauco y Constitución

29/10/2019
29/10/2019
30/10/2019

Excluded (Sustainability/Social bond)Action Logement Services

USD500m
USD500m
EUR1bn/USD1.1bn

KEPCO

KRW200bn/USD168m

24/10/2019

Excluded (Sustainability/Social bond)

Le Groupe Bel

EUR125m/USD139.4m

22/10/2019

Excluded (Sustainability/Social bond)Bank of Montreal

USD500m

21/10/2019

Excluded (Sustainability/Social bond)

Iren

EUR500m/USD551.7m

14/10/2019

Excluded (Not aligned)

Linköping Stadshus AB (Linköping
Municipality)
China Construction Bank Corporation

SEK500m/USD51.9m

22/10/2019

Pending (Waiting for more info)

CNY4.4bn/USD624.2m

29/10/2019

Pending (Waiting for more info)

Shandong Meichen Ecology &Environment Co.,Ltd.

CNY700m/USD98.9m

24/10/2019

Pending (Waiting for more info)

Xinhua Hydropower Company
LimitedChina Zheshang Bank Co.,Ltd.

CNY1.5bn/USD212m

22/10/2019

Pending (Waiting for more info)

CNY77.9m/USD11m

21/10/2019

Pending (Waiting for more info)

Fujian Yongrong Holding Group
Co.,Ltd
Zhuzhou Xiangjiang Construction
Development Group Co.,Ltd.
Jinneng Science&Technology Co.,Ltd

CNY300m/USD42.4m

16/10/2019

Pending (Waiting for more info)

CNY1.5bn/USD211.9m

16/10/2019

Pending (Waiting for more info)

CNY1.5bn/USD211.6m

14/10/2019

Pending (Waiting for more info)

Jiangsu Eastern Shenghong Co.,Ltd.

CNY1bn/USD140.4m

30/09/2019

Pending (Waiting for more info)

Shuntai Leasing Company Limited

27/09/2019
27/09/2019
27/09/2019
17/10/2019

Pending (Waiting for more info)

EBRD

CNY80m/USD11.3m
CNY36m/USD5.1m
CNY21.05m/USD3m
EUR500m/USD552.4m

Guangxi Beibu Gulf Bank Co., Ltd.

CNY2bn/USD283m

15/10/2019

Pending (Waiting for more info)

Excluded (Sustainability/Social bond)Pending (Waiting for more info)

Green bonds in the market
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Benton Washington Regional Public Water Authority of The State of Arkansas - closed 1 November
Massachusetts Water Resources Authority - closed 1 November
PNC Financial Services Group - closed 1 November
Sekisui House REIT - closed 1 November
Berlin Hyp - closed 4 November
New York State Housing Finance Agency - closed 6 November
District of Columbia Water and Sewer Authority - closed 6 November
Deutsche Kreditbank (DKB) - closing 7 November
Metropolitan Transport Authority - closing 7 November
DTEK Renewables - closing 12 November
KfW (tap) – closing 12 November
Orsted – closing 19 November
Government of Indonesia (retail bond) - closing 21 November

Investing news
The World Bank launched a Sovereign ESG Data Portal. This platform gives free access to sovereign-level ESG data inorder to improve transparency and aiming at increasing private sector investment in emerging markets.

The Inter-American Development Bank and the Government of the UK have announced a partnership which aims to
support growth and transparency in the green bond markets in the Latin American and Caribbean region. This will bedone through a platform that will contain information such as detailed description of use of proceeds of the bonds.
The FCA has published a statement prioritising a number of issues regarding their work on climate change and green
finance such as new rules to improve climate-related disclosures.
Mark Carney, Governor of the Bank of England, has repeatedly stressed the responsibility of the financial sector toconsider climate change as a risk factor to their business.
Bloomberg reports that firms are setting up mutual funds that mimic hedge fund practices such as shorting firmsthat do not shift to sustainability.
EURONEXT launched a green bond segment during Climate Finance Week in Dublin. Green bonds listed on Euronext
Amsterdam, Brussels, Dublin, Lisbon, Paris and Oslo are now consolidated Euronext Green Bonds.
South Korea’s state utility firm Korea Electric Power Corp. (KEPCO) issued KRW200bn (USD170.8m) worth wondenominated sustainability bonds, becoming the nation’s first energy firm to sell socially-focused debt.

Green bond gossip
Zainab Ahmed, Finance Minister of Nigeria said they are considering issuing another green sovereign bond next year.
New South Wales Treasury Corporation has announced it is planning to issue a bond that will finance a mix of green
and social assets.
The Central American Bank for Economic Integration (CABEI) is planning to issue its first benchmark-sized green
bond.
Japanese utility company Tepco is considering issuing a green bond. It established a new unit called Tepco
Renewable Power that will take over the renewable energy business through which the funds will be raised.
Owens-Illinois Group announced that OI European Group B.V will issue a green bond raising EUR300m (USD328.2m)
to finance projects in renewable energy projects, energy efficiency, water management and circular economy.

Readings & reports
The Network for Greening the Financial System published a guide on sustainable and responsible investment for
central banks’ portfolio management encouraging them to include sustainability considerations into their portfolio
management.
The Climate Friendly Materials Platform, which brings together leading researchers and policy advisors from acrossEurope, convened by the research network Climate Strategies, published a report which suggests five policy
instruments that could create economic incentives for private actors and industry to pursue transformative
investments aligned with Europe’s climate-neutral objectives for 2050.
Norton Rose Fulbright illustrates the use of transition bonds, green bonds, and sustainability-linked financing inagribusiness and portrays multiple case studies on this topic.
A report by the Rocky Mountain Institute states that the global energy transition can be accelerated due toadvancements in battery technology. This is fuelled by improvement of cost and performance of batteries, growing
demand for electric vehicles as well as increased renewable energy generation.

EventsThe Climate Risk and Green Finance Regulatory Forum. London, 19 November. The Forum will examine how theGreen Finance Strategy is going to be implemented by the UK Government and financial regulators. It will clarify thepractical steps that financial institutions need to be taking now in order to ensure that they are prepared and fullycompliant. It will also examine the new opportunities that this seismic shift in finance will offer. CBI is supporting thisevent – Please use code “CRF1CBI” at the checkout to receive 30% off the standard registration fees.

‘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.