This week saw an increase in the number of bonds being issued, with 38 sustainable bonds issued this week compared to 25 during the previous week. Despite this, the value of issuance was down due to a lack of big bonds from supranationals compared with the previous week, which saw issuance from the EU and European Investment Bank.
While there were significantly fewer supranational issuers this week, one – the Inter American Development Bank (IADB) – topped issuance by value with a seven-year $2 billion sustainability bond which the supranational said would be its final US dollar fixed-rate global benchmark for 2024.
Corporates issued in much greater numbers this week with a high number of smaller and mid-sized bonds along with a couple of larger bonds from French real estate firm Unibail Rodamco Westfield and Brazilian biofuel joint venture Raizen Energia.
Some issuances of particular interest this week include a now-uncommon €750 million ($829 million) sustainability-linked bond from French supermarket chain Carrefour – which is linked to Scope 1 and 2 greenhouse gas (GHG) emissions and food waste – along with the launch of Eurobank's €850 million green bond which is due to settle on 24 September 2024.
Sustainable loans meanwhile had a much stronger week with $7.6 billion in deals completed compared with $1 billion from the previous week.
Much of the rise in sustainable loans this week is due to Las Vegas-based data centre company Switch signing a $4.25 billion sustainability-linked borrowing base facility. The facility includes a $3.5 billion revolving credit facility along with a $750 million term loan.
Tomas Morton, president of Switch said that "the series of financings we have completed this year ideally position us for growth opportunities at the forefront of cloud, AI and enterprise, while affirming our commitment to sustainability." JP Morgan and TD Securities served as co-structuring agents for the deal while ING and TD Securities served as co-sustainability coordinators.
- 38 sustainable bonds were issued and added to our database this week
- $15.2 billion total value of sustainable bonds issued this week, down from $21.6 billion the previous week
- 14 loans worth $7.6 billion were added to our intelligence platform this week
Top 5 bonds originated by value
| Issuer | Label | Value ($M) | Issuer type | Country |
|---|---|---|---|---|
| Inter American Development Bank | Sustainability | $2 billion | Supranational | Supranational |
| Unibail Rodamco Westfield (URW) | Green | €1.3 billion ($1.4 billion) | Corporate | France |
| Raizen Energia | Green | $1 billion | Corporate | Brazil |
| KfW | Green | £750 million ($984 million) | Agency | Germany |
| EDP - Energias de Portugal | Green | €850 million ($941 million) | Corporate | Portugal |
These are the largest five bonds issued between 11 September 2024 and 17 September 2024, taken from Environmental Finance Data's Intelligence Platform.
Top 5 loans originated by value
| Borrower | Label | Value | Sector | Country |
|---|---|---|---|---|
| Switch | Sustainability-Linked Loan | $4.25 billion | Telecommunications | United States |
| Cromwell Property Group | Sustainability-Linked Loan | AUD1.2 billion ($805 million) | Real Estate | Australia |
| BoCom Leasing | Green Loan | $600 million | Financial | Hong Kong |
| AIMS APAC REIT | Sustainability-Linked Loan | $400 million | Real Estate | Singapore |
| E Ink | Green Loan | TWD3 billion ($384.8 million) | Technology | Taiwan |
These are the largest five loans issued between 11 September 2024 and 17 September 2024, taken from Environmental Finance Data's Intelligence Platform.
Sustainable debt news highlights on Environmental Finance
Wellington: Time to stop 'annoying' rise of three-year lookback sustainable bonds
Wellington has urged sustainable bond issuers to only use three-year lookback periods for financing projects if you "really need it," arguing the recent trends towards including this extended period is "painful" for some investors.
'Unlikely' potential Transition Loan Principles will launch in 2024
The expert taskforce brought together by influential trade associations to look into developing ground-breaking Transition Loan Principles (TLP) is unlikely to publish any guidance before next year.
Sustainability-linked bond issuance sinks to record low in August
Sustainability-linked bond (SLB) issuance dropped to an all-time monthly low in August as the performance-based instrument struggled to attract issuers amid ongoing credibility concerns.
Mirova creates research centre to spur blended finance with proof of impact
Mirova has launched a research centre it says will catalyse blended finance and impact investments by combining the knowledge of its investment teams with academic research in under-examined areas, including through the creation of a blended finance database.
This week's bonds by issuer type
This shows all new bonds added to Environmental Finance's Intelligence Platform between 11 September 24 and 17 September 24 broken down by issuer type.
Bonds in focus: Green Bond – Raizen Energia
| Value | €1 billion ($5.5 billion) |
|---|---|
| Coupon payment frequency | Annual |
| Settlement date | 17 September 2024 |
| Maturity date | 17 January 2035 |
| Tenor | 10.5 Years |
| Coupon | 5.7 % |
| Has Framework? | Yes |
| Has Second party opinion? | Yes. Provided by Sustainalytics. |
| Standards | ICMA GBP |
| Lead Manager | BNP Paribas, Bradesco BBI, Citigropu, Itau BBA, Morgan Stanley, Rabobank, Santanter, SMBC Nikko |
| Use of Proceeds |
|
| SDGs |
|
Brazilian fuels firm Raizen Energia has returned to market with its second green bond in 2024, following a $1.5 billion green bond in February 2024. The company is a joint venture between Royal Dutch Shell and Cosan – a Brazilian conglomerate that produces bioethanol, sugar and energy. The proceeds of the bond include development of sugarcane ethanol biofuel production facilities and expenditures relating to energy efficiency at the biofuel plants.
Other highlighted deals on Environmental Finance
Eiffel narrowly misses €800m target for second impact debt vehicle
Eiffel Investment Group has held a final close for its second impact debt strategy at €777 million ($864.5 million), narrowly missing its €800 million target.
IFC issues second 'blue'-focused green bond
The International Finance Corporation (IFC) has raised SEK2.6 billion ($252 million) from the second green bond it has issued to promote its ‘blue’ finance projects amid rising investor interest in sustainable water and ocean-related investments.
Who are the top lead managers of 2024 year-to-date?
This shows the top lead managers for sustainable bonds in terms of value YTD (up to 17 September 2024), using data from Environmental Finance Data's Intelligence Platform.
From out analysts: Annual issuance of EU sustainable bonds by label
With Environmental Finance's Sustainable Debt Americas 2024 conference taking place in New York this week here is a snapshot of issuance from North, South and Central America. While green bonds have dominated issuance there has been a shift toward more diversity in labels with social, sustainability and sustainability-linked bonds (SLB) accounting for half of total sustainable bond issuance since 2021. Also notable is the collapse of the SLB label in 2024, in line with trends in the wider market.
Environmental Finance Data
Environmental Finance Data is Environmental Finance's data platform. It is updated daily with the latest labelled sustainable bonds and loans - including green, social, sustainability and sustainability-linked instruments. The dynamic data platform offers users comprehensive information on the sustainable bond and loan market which is ideal for research and analysis. For more information or to see the platform in action, email scott.davis@fieldgibsonmedia.com.