There is no sign that the green bond market has gone off for an early summer break.
In fact, the market chugged along nicely in July, which has proved an eventful and action-packed month.
Happily, the activity has come thick-and-fast in recent weeks, with announcements from both of SunEdison's yieldco, a Canadian real estate venture, New York State's Environmental Facilities Corporation, a sterling bond from KfW, and plans for the biggest ever US municipal issue.
This is all hugely pleasing and helps to allay fears of a slowdown after the market got off to a sluggish start to the year.
We publish our data on a quarterly basis, but a quick round-up of the figures suggests that some $1.8 billion of green bonds were issued so far this month, with a further $2.5 billion expected in coming weeks.
That compares with $11.8 billion of issues in the second quarter, up from $8.7 billion in the first quarter.
One of the highlights of the month is our story today that the Central Puget Sound Regional Transit Authority plans a $923.8 million green bond for public transport.
Not only is that set to be the biggest US municipal bond issue, but it was particularly reassuring to see that Puget Sound has sought a second opinion, from Sustainalytics.
To our knowledge, only two other municipal bonds have sought second opinions – Spokane and DC Water – and it will be interesting to see whether this helps boost demand.
Meanwhile, the solar asset-backed securities (ABS) market received a boost when SolarCity today announced plans for its fourth issue – this time a private placement. If successful, it will mean that the pioneering California-based firm has raised $449.6 million through four ABS issues to date.
Sunrun has recently followed SolarCity by tapping the ABS market. Look out for our feature in coming days in which we explore the exciting potential of solar ABS.
The green bond announcements from both of SunEdison's yieldcos – TerraForm Power and TerraForm Global was also encouraging. With yieldcos expected to increasingly issue debt, it will be interesting to see whether they continue to issue 'use of proceeds' green bonds or opt instead for ABS.
July also saw Goldwind issue the first 'labelled' green bond out of China. This was an important development because China has the potential to turbo charge the green bond market.
KfW's sterling issue was also noteworthy because there has been a mysterious lack of bonds in this currency.
The month also saw important developments in terms of Barclays/MSCI opening a fresh consultation on the rules of its green bond index, the Green Bond Principles being asked to consider social bonds, and the Climate Bonds Initiative going out for a consultation on a revised set of standards.
After all that, I think I need a summer break!
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