Green bonds issuance in January-June stood at USD 19 billion (EUR 17.3bn) and the Climate Bond Initiative (CBI) expects it to hit USD 70 billion for the whole of 2015.
The total came very close to the USD 20 billion recorded in the first-half (H1) of 2014.
COMPARING AND CONTRASTING
Last year green bond issuance tripled to USD 36.6 billion. CBI sees green bond issuance in 2015 reaching USD 70 billion, with a stretch target of USD 100 billion. To meet these expectations, green bonds in the second half of the year have to top USD 50 billion.
“We believe that emerging markets issuance is what will make all the difference,” the not-for-profit organisation told SeeNews Renewables. One of the bright stars on that horizon is the USD-300-million green bond by wind turbine maker Xinjiang Goldwind Science & Technology (HKG:2208), issued earlier this month. This first labelled green bond from a Chinese issuer was nearly five times oversubscribed.
India and China are leading the way for green bonds in emerging markets.
A recent report by CBI values the total climate-aligned bonds universe at USD 597.7 billion. Chinese yuan-denominated bonds account for 33% of that, or a total of USD 197.7 billion.
In India, Yes Bank (BOM:532648) early this year raised about INR 10 billion (USD 157m/EUR 143m) from the country’s first green infrastructure bonds issue. The Export-Import Bank of India later issued a USD-500-million US dollar-denominated green bond.
GREEN BONDS IN JUNE
According to the CBI, green bonds issuance in June 2015 alone stood at USD 3.97 billion, including several quite big transactions. The monthly total compares to USD 2.4 billion a year ago and to USD 3.56 billion a month ago.
The list of the biggest issuers includes Digital Realty Trust with a USD-500-million green bond for low-carbon buildings; the Swedish Export Credit Agency with a USD-500-million inaugural issuance; and Morgan Stanley also with a USD-500-million inaugural green bond for wind, solar and energy efficiency loans.
Latvian energy company Latvenergo also issued a EUR-75-million green bond, the proceeds of which will back projects related to bioenergy, environmental preservation and sustainable environment. It initially targeted EUR 50 million but upsized the issue.
Meanwhile, SunEdison’s (NYSE:SUNE) renewables yieldco TerraForm Power Inc (NASDAQ:TERP) issued USD 150 million of additional green notes.
Speaking of TerraForm Power we cannot skip the announcement by SunEdison that its other yieldco TerraForm Global Inc, which is focused on emerging markets, intends to offer USD 800 million worth of green bonds. It will use the funds raised through the sale to finance, in whole or just partially, renewable energy projects.
(USD 1 = EUR 0.911)
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