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 bonds have been a phenomenon in recent years, with the market growing consistently at double digit rates, cheering environmental activists and bankers alike. But what has this astounding growth achieved and has it created additionality?
Asia remains one of the leading regions for climate bond issuance in emerging markets globally, driven by both strong political will to transition towards a cleaner economy and, more fundamentally, a deep need for long-term infrastructure investment. We speak with Shyam Saraf, Director, DCM at MUFG, about how Asia’s climate bond sector is evolving to tackle the infrastructure gap.
Nedbank and ABSA Bank were instrumental in helping Enel’s Green Power Division secure ZAR14bn financing for 5 wind farm projects across the country, enhancing the deal with innovative features including a tailored shareholder structure and cross-collateralization between the sub-portfolios.
Leading Brazilian pulp and paper producer Suzano Papel e Celulose helped pioneer the country’s green bond market with the first green agricultural receivables security, or CRA, and a number of transactions on the international capital markets. The company’s CFO, Marcelo Bacci, an ardent supporter of ESG-focused investing, talks to Bonds & Loans about why the company decided to engage the sustainable finance segment despite no immediate price or funding size benefits in sight.
The legendary EM investor spoke to Bonds & Loans about his new brainchild, Mobius Capital Partners - an ESG-focussed EM asset management company, and explained why when it comes to investing in sustainable finance market corporates, bigger isn't always better.
Despite its reputation as a heavy emitter of greenhouse gasses, Indonesia’s green sukuk was hailed as a game changer for both Islamic and ESG investing. Luky Alfirman, Director General of Budget Financing and Risk Management, Ministry of Finance in Indonesia believes its inaugural transaction in February is the first of many to come as the government looks to double down on its commitment to climate change mitigation.
Environmental, social and governance (ESG) indicators are integral to PIMCO’s sovereign credit assessments, which inform our investment decisions. But how exactly do we incorporate ESG considerations into our decisions?
Cape Town is one of the few municipalities to have issued a green bond, a hugely successful transaction that generated significant oversubscription despite a challenging local market backdrop. We spoke with David Valentine, the Treasury Director and Janine Marion Abrahams, Head of Bank and Treasury Loans, Finance and Treasury Department at the City of Cape Town, about how it prepared for the transaction and why it chose to issue.
In a deal that involves an amortizing loan with debt and equity tranches on a non-recourse project finance basis, the Saudi Arabia-based developer broke new ground by achieving an 18-year tenor, raising USD financing with an EGP-denominated tariff and bringing in a Chinese commercial bank.
- As Sovereigns Issue Green Bonds, Questions of Creating ‘Additionality’ Linger
- Metito CFO: “Managing exposure to EM investments under the IFRS 9 ECL model is a challenge in GCC”
- Will ESG Standards and Ratings Heterogeneity Kill the Sustainable Finance Market?
- CASE STUDY: Atlas Renewables Prints One of Latin America’s First Green Project Bonds
- Luft Energia CEO Doris Capurro Eyes Multilaterals, ECAs for Argentina Renewables Funding