On 16 May 2018, the African Development Bank (AfDB) successfully priced a EUR1.25bn 10-year Social Bond transaction. The issue follows the inaugural EUR500mn 7-year Social Bond issued in November 2017.
Indonesia navigated a challenging and volatile market to place a USD3bn dual-tranche green sukuk, which will go towards supporting the country’s efforts to combat climate change.
Global green bond issuance surged to record levels in 2017 with more than USD155bn issued globally, but despite a 78% increase in issuance volumes and the development of innovative new products, analysts contend the market’s growth remains hamstrung by the same old issues as they wait for green’s watershed moment.
The first two stages of the Egyptian government’s solar and wind programme have been somewhat hit-and-miss, but increased development bank involvement sets the next stage on a path to encourage wider private sector participation. Third time’s a charm – but only if local and commercial lenders play their part, analysts suggest.
Invenergy’s 70-megawatt Campo Palomas wind project, located in the Salto Department of Uruguay, launched an investment-grade USD135.8mn in the US Private Placement Market. Campo Palomas is Invenergy’s first project in Uruguay as it continues to expand its presence in Latin America.
It has been a stellar year for emerging market credit, with most of the key benchmark indices outperforming and EM fundamentals broadly improving – while the global economy continues to heat up. But with QE – one of the main forces driving yield-hungry investors into EMs – winding down, a slew of EM elections on the horizon, and uncertainty over the direction of large developed economies like the US, what are the top trends likely to be seen in EM credit in 2018?
The City of Cape Town successfully placed ZAR1bn in new green bonds this Summer to fund a raft of sustainability initiatives in the city, proving once again that cities are a natural fit for sustainable finance instruments.
Saudi Arabia-based ACWA Power placed a USD814mn bond with a 22-year maturity in the international markets in May, an impressive debut following a year of planning and structuring. The transaction allowed the company to diversify its investor base and extend its maturity profile.
Since 2012, Vigeo Eiris has provided almost 60 second party opinions on ESG transactions for a diversity of issuers and sectors – about 20% of the market’s supply as of 2016 – which gives the company a privileged position from which to observe the market, both developed and emerging. The company was the first opinion provider for a corporate ESG issuance, launched by Air Liquide, and has worked on a range of other landmark European ESG transactions including those launched by EDF, Unibail-Rodamco, the French government, and Iberdrola.
Mexican water products manufacturer Grupo Rotoplas saw tight pricing on the company’s – and the Latin American market’s – first sustainability bond to date, a very strong debut made more impressive by the fact that it was launched amidst one of the weakest primary markets Mexico has ever experienced.
- Why Green Sukuk Could be a Growth Driver for Islamic Finance
- Azure Power CEO on Building Green into Corporate DNA
- Emerging Market Regulators Make Strides Building Green Bond Momentum
- Exchanges Play a Crucial Role in Developing the Sustainable Finance Market
- Benefits, Standards, and Price Harmonisation in the Sustainable Finance Market
15 Jun 2018