Sindicatum prices inaugural INR2.5bn green bond
Singapore-based Sindicatum Renewable Energy has issued a two-tranche INR2.5 billion ($40 million) bond to fund clean energy projects in India.
The issue consists of a INR951.1 million, 5-year tranche paying 8.60% which priced at 133 basis points over the Indian government bond (GSEC) rate and a INR1,585.3 million, 7-year tranche paying 194 points over GSEC.
Sindicatum's bond is the first international issue from Singapore to comply with the newly released ASEAN Green Bond Standards and to be accredited under ICMA's Green Bond Principles. The bond is also the first international green bond to benefit from a guarantee from GuarantCo, part of the Private Infrastructure Development Group.
It was rated A1 by Moody's and AA- by Fitch, and was more than twice oversubscribed following roadshows in London and Singapore. The investors are 70% from Asia, and 30% from Europe.
"This bond will allow us to accelerate the pace of our investments in India's clean energy infrastructure while protecting us from foreign exchange risk," said Sindicatum CEO Assaad Razzouk.
"We hope [it] will open up the market for renewable companies to tap into investors' demand for sustainable energy assets".
ING bank acted as sole lead arranger, bookrunner and green bond structuring advisor.
Foresight's Italian green bond fund achieves €70m first close
UK-based investment manager Foresight has achieved a first close on its Italian green bond fund, raising €70 million ($86.8 million).
The company, which has £2.8 billion ($4 billion) of assets under management, said the fund has already "generated strong appeal among banks, insurance companies and family offices, with support from financial institutions including the European Investment Bank".
The fund is targeting a final close of €200 million by the end of 2018.
Foresight aims to identify small and medium-size projects in Italy, which are likely to include solar and wind energy, waste–to-energy, biomass and anaerobic digestion, and energy efficiency. The project developer will then issue a bond that the fund will underwrite in full. Such projects usually have a debt capacity of between €5 million and €15 million, Foresight said.
The bonds will be listed on the Milan stock exchange in the ExtraMot Pro segment. The fund will target returns of between 6% and 8%.
The pipeline of potential investments for the fund is strong due to the fact that the "niche Italian market" is not currently served by banks or other sources of investment, Foresight added.
Federico Giannandrea, partner and head of Foresight Southern Europe, said: "There will be considerable financing requirements in Italy over the coming years in view of the significant investments that are planned, both in terms of renewable energy generation and energy efficiency solutions as part of the recent National Energy Strategy."
ADBC partners with Luxembourg to connect to international investors
The Agricultural Development Bank of China (ADBC) will display information about its green and sustainability bonds on the Luxembourg Green Exchange.
The agreement will give international investors access to information, in English, about ADBC's green, sustainability and poverty alleviation bonds which are traded on the Chinese Interbank Market.
"This is the first time information related to ADBC's domestic green bonds will be displayed on an international stock exchange. It will facilitate connectivity among China and international investors," said Yin Jiuyong, vice president of ADBC.
"Our agreement with ADBC is fundamental for the creation of a global green bond market", said Robert Scharfe, chief executive of Luxembourg Stock Exchange.
ADBC is one of China's three 'policy banks', and is responsible for the country's food security. About 50% of its lending is for the purchase of grains and cereal reserves, while the bank is also mandated to ensure farmers' income growth by financing rural infrastructure.
So far it has issued two green bonds, with a combined value of CNY10 billion ($1.44 billion), according to Environmental Finance's Green Bond Database.
Midpeninsula region of San Francisco prepares for second green bond
California's Midpeninsula Regional Open Space District has issued a preliminary statement announcing its second green bond.
The transaction was rated AAA by Fitch and S&P Global.
The San Francisco Bay district said it will use the proceeds of the 2018 green bonds to support a range of projects including the acquisition of property to protect and preserve natural open space lands, construction of public access improvements such as new trails and parking areas to open public access and enhancements to open space lands to restore disturbed natural areas back to their original condition, including forests, streams, watersheds and coastal grassland areas.
Morgan Stanley is the sole lead manager.