Malaysia has been pioneering the sustainable Islamic finance market well before the country’s 2014 launch of the Sustainable and Responsible investment (SRI) Sukuk framework. Zainal Izlan Zainal Abidin, Deputy Chief Executive of Malaysia’s Securities Commission, says the country needs to build on the seven SRI sukuk issued to date and pull more borrowers from the private sector into the sustainable finance market while ensuring demand from investors.
RenovAr, Argentina’s flagship solar and renewables programme, has struggled in recent months due to the severe macroeconomic challenges weighing on the country. But as the country’s markets stabilise, developers focused on the region remain cautious as upcoming elections later this year could result in a change of direction. We speak with Martin Parodi, Managing Director, Total Eren Argentina, one of Argentina’s leading solar and wind power players, about the outlook for the country’s power sector and the factors influencing the company’s funding strategy.
Despite a slowdown in some of the Andean region’s powerhouse economies and souring emerging market investor sentiment, many borrowers were unperturbed and moved into markets with inaugural, innovative transactions through much of last year. We take a closer look at some of the transactions originating from the region that won top prize at this year’s Bonds & Loans Latin America Awards.
The world isn’t the only thing heating up. As issues of governance and climate change continue to dominate headlines, financial institutions are facing growing pressure from governments and public opinion alike to integrate Environmental, Social and Governance (ESG) considerations into day-to-day operations – in everything from how they lend or invest to how they run their operational facilities.
The South East Asian sovereign returned to market with its second green sukuk issuance in 12 months. The dual tranche conventional/green sukuk issue saw USD7bn worth of orders from high quality accounts and tightened 30bp and 45bp inside the initial guidance.
Nigeria’s Access Bank became the first corporate in the country to place green bonds in the public market, but will the move inspire other borrowers to tap into emergent pools of ESG-conscious liquidity? Greg Jobome, Executive Director of Risk Management at Access Bank and one of the key project managers for the Bank’s recent transaction seems to think it will, but more work needs to be done to help the bank’s own clients – current or prospective issuers themselves – in making the transition towards more sustainable business processes.
The global green bond market has over the past five years grown from virtually nothing into a broad sustainability-linked fixed income asset class, paying financial dividends while tackling some of the world’s most pressing climate and sustainability-related challenges. As Middle Eastern governments redouble their efforts to diversify their energy sectors and wider economies, will 2019 be the year ESG more broadly – and green bonds specifically – take the Middle East by storm?
Last year was the first in a decade where the sustainable finance market failed to show significant growth, largely in line with broader slowdown in fixed income. But structural innovation is likely to continue driving this market forward, making it is an asset class that even the largest investors can’t ignore, according to experts participating with a roundtable hosted by Societe Generale.
Following Al Dur Power & Water Company’s (Al Dur) debut project financing transaction in 2009, the project company returned to the financial markets last year to refinance its outstanding debt. Navigating difficult macroeconomic conditions, alongside broader EM volatility, Al Dur secured a complex USD1.3bn refinancing package from an assortment of national and international lenders.
With its substantial renewable energy ambitions telegraphed for years, industry practitioners often cite India as a potential major driver for the development of the sustainable finance and green bond segments among its emerging market peers. We speak with Vinod Kothari, a Kolkata-based structured finance advisor about why green bond volumes in India are down year-on-year, and the segments likely to drive issuance in the following financial year.
- Green Bond Additionality: The Big Picture
- MUFG: System for Incentivising Investors Needed for Climate Bonds Uptake
- CASE STUDY: Enel Gives Wind to First Project Financing in South Africa’s Local Renewables Market
- Suzano CFO on ESG: “This trend will not be reversed, and we see Brazil becoming a key part of it”
- Mark Mobius: SMEs at the Outset of ESG – That’s Where the Real Opportunity Lies
15 May 2019