Momentum in Multi-Billion Dollar European Green Bond Market

first_imgThe global issuance of Green bonds exceeded US$100bn in 2007, according to the Climate Bonds Initiative, a not-for-profit organisation to mobilise bond markets for climate change solutions.  The development bank said today that it will invest in up to 5% of “Amundi Planet – Emerging Green One”, the first fund launched in July by Amundi and the IFC, a member of the World Bank Group.  Momentum in Multi-Billion Dollar European Green Bond Market The fund aims to allocate at least triple the amount of the EBRD’s investment to the bank’s countries of operations, as part of the fund’s regional diversification policy.  In addition, the bank will launch a dedicated Green bond technical cooperation programme, focused on expanding Green bond capacities in EBRD countries of operations, which will spur on the financing of green projects.  FacebookTwitterLinkedInEmailPrint分享PVTech:Nine of Europe’s industrial power giants and most prominent green bond issuers have clubbed together to put green bonds – mechanisms that are beginning to draw huge traction worldwide – at the heart of their financing strategies.Massive brands EDF, Enel, ENGIE, Iberdrola, Icade, Paprec, SNCF Réseau, SSE and TenneT, which span power, transport, waste management, and real estate, have pledged to increase their own green bond activity and called upon other industrial corporates to consider issuing green bonds, as part of the Paris 2017 Climate Finance Day.The pledges suggest Green Bonds are set to take centre stage in clean energy financing. Indeed, Green bond issuance in 2017 had already surpassed the US$100 billion milestone last month, marking a new annual record, according to Climate Bonds Initiative (CBI) data.So far, all nine companies have issued a total of €26 billion in Green Bonds, which accounts for over 10% of total outstanding Green Bonds.The first such bond was issued 10 years ago and these financial instruments now finance renewables, energy efficicency, low carbon transport and buildings, and a range of other environmental programmes.The most recent green bond news includes Philippines-based commercial bank, BDO Unibank, issuing its first green bond of US$150 million for sole investor International Finance Cooperation (IFC), and Indian Railways Finance Corporation issuing its inaugural US$500 million green bond on behalf of Indian Railways — the world’s fourth largest rail network.More: European industry and power giants put Green Bonds in the spotlight The fund, the first of its kind dedicated to emerging markets, is on track to reach the €2bn earmarked for February 2018 when the fundraising will close. center_img More: EBRD pledges up to EUR100m in largest Green bond fund Reuters:The EBRD has announced plans to invest up to €100m in Amundi and the International Finance Corporation’s Green bond fund, which stands as the world’s largest, having raised more than US$1.2bn so far.  EBRD president Suma Chakrabarti said in a statement that the fund should boost green finance in the EBRD regions, increase investor awareness of green capital market products and support banks to issue Green bonds.  Since it first started issuing them, the EBRD has launched 65 Green bonds totalling €2.5bn-equivalent. The targets for the greening of the overall portfolio will also apply at the same rate as the amount allocated to the EBRD regions. last_img