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A day after launching a 600m Swedish Kroner Green Bond, the World Bank has launched another 10 new Green Bonds denominated in different currencies.
The 10 bonds are primarily for the new, open-ended, Nikko World Bank Green Bond fund, previously reported.
There are now quite a few banks getting used to Green Bonds: veteran SEB was sole lead manager for the Swedish Kroner issue and for two of the 10 bonds for the Nikko fund; JP Morgan has four of the 10; RBC Capital Markets has the NZD; and TD Securities is sole lead manager on three.
This latest issue takes the amount of outstanding of World Bank Green Bonds to $1.1bn.
Expect to see a lot more in 2010!
A few weeks ago we told you about Nikko Asset Management’s new World Bank green bonds fund for Japanese investors. They’ve now created a Luxembourg fund aimed at European and Middle Eastern investors. It will be available in £, US$ and Euro share classes.
The fund – the first of its kind – can invest up to 100% of its portfolio in green bonds issued by the World Bank, with funds ring-fenced for World Bank funded climate change projects such as energy efficiency, renewable energy and reforestation.
Nikko AM’s Charles Beazley says investors want: “… investment vehicles where they can be certain their money will directly help the environment without compromising their investment objectives.” Absolutely right!
For more info see the Nikko Media Release – 22 Feb 2010.
The International Monetary Fund is planning to launch a $100 billion green fund as part of global efforts to stimulate economic growth and help finance low-carbon projects. Details of the fund and its financing are to be announced in about two weeks time.
LSE is today introducing a new bond trading platform for retail bonds intended to “improve transparency and pricing” (the size of the bid-offer spreads which can be very large). The aim is to make corporate bonds more accessible for retail investors, and so to open up a new source of financing for companies and others.
At the moment only gilts and a handful of corporate bonds are on the platform, but it’s hoped that numbers will grow. Of course the initiative may not succeed (some institutions make a lot of money out of the current opacity!) . However, it could be useful and a good platform for getting / enabling retail interest in green bonds, and so worth noting. LSE might also be supportive of a green bond if it helps their platform gain traction!
Mark Mansley, Rathbones