Q3 sees the biggest single issuance this year so far of USD 1.1 billion (thanks to NWB Bank) and overall total issuance is USD 6.9 billion (EUR 6.1bn) for the quarter. The green bond market has slightly slowed from a high in Q2. But, it seems like the issuance is going up in size – the average in Q3 bonds was USD 204 million, well above the Q2 figure of USD 144 m.
Top of the Q3 table is JP Morgan, underwriting a mix of corporate, development bank and municipal green bonds just over USD 1.1 billion. The biggest municipal green bond, second largest deal of this quarter, by Central Puget Sound Transit took its sole underwriter JP Morgan (JPM) straight to the top and accounted for 85% of JPM’s Q3 total. Other boost also came from its sole underwriting for IFC green masala bond and joint bookrunning for the USD-800-million TerraForm Power green bond.
A big leap forward by HSBC to rank second in Q3, first time to join the quarterly top five underwriter this year! All of the green bond deals it took part in are joint underwriting with other entities, adding up to USD 894 million. Three of its deals – NWB Bank, KfW and EIB – are among the five largest deals of the quarter, pushing HSBC much forward this quarter. HSBC were also the bookrunner for the first corporate green bond in India issued by CLP Wind Farms India.
Bank of America Merrill Lynch (BAML), who is the leader in the year-to-date league table, remained in the top 3 but slightly slipped to the third this quarter. It remains active in the market, underwriting a total of eight deals worth of USD 845 million, in which three are among the five biggest deals of Q3. It is the bookrunner for all of its green bond deals – two bonds for TerraForm Power, EIB, two bonds for SolarCity, NWB Bank, and Nordic Investment Bank, and the sole underwriter for the green guarantees by OPIC.
Closely following BAML is Barclays. It made a big jump from 13th place in Q2 to the fourth in Q3. Ranked the fifth largest underwriter in Q3, CITI underwrote USD 655 million of the six green bond deals this quarter.
New in the top 20 is Bank of China, signalling the recent proactive initiatives in mobilising green bond market in China. With the exciting momentum for green bonds in China and Asia, we are expecting some new underwriters from Asia in Q4 scoring in the league table!
In the year-to-date league table, the top 5 underwriters are Bank of America Merrill Lynch, JP Morgan, CITI, Credit Agricole CIB and Morgan Stanley.
(USD 1 = EUR 0.883)
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Q3 green bond underwriters ranking. Source: http://www.climatebonds.net
