Following a successful debut in the European ESG-linked loan space in February, Acciona repeated the move with a dual-tranche dual-currency transaction worth USD30mn in Chile, only the third ESG linked loan in Latin America.
Hadley Peer Marshall, Managing Director of Infrastructure Debt at Brookfield speaks with Bonds & Loans about managing local currency constraints when investing in infrastructure in Latin America, and new sectors generating investment opportunities.
In May, Russian Railway’s issued the country’s second green bond - and the first in hard currency - by raising EUR500mn in 8-year notes. Capitalising on a warmer funding environment, as well as the company’s strong track-record in the capital markets, the transaction also marked the lowest-ever yield on a Russian issuance.
ESG – shorthand for environmental, social and governance – considerations are increasingly being prioritised by organisations, investors and lenders alike. But quantifying its influence on credit risk and funding is proving to be quite elusive. A group of former finance professionals and academics is trying to change that by putting “intangibles” like human risk, corporate culture and values at the centre of that relationship.
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 Growth of Sustainable Finance in MENA
- Customized Solutions, Investor Demand Key Drivers of ESG Growth
- CASE STUDY: Al Dur Power & Water Company Secures USD1.34bn Refinancing Despites Headwinds
- Interest Rate Uncertainty, Market Volatility Keeping India’s Green Bond Issuers at Bay
- Green Bond Additionality: The Big Picture
12 Jul 2019