As expected, 2015 will see a record issuance of green bonds, and after a lean September, October has seen a record monthly issuance, making it the best month for the green bonds market this year.
According to the green bonds issuance tracker Climate Bonds Initiative, October has already seen issuance worth over $5 billion, topping the August total of $4.48 billion, putting the cumulative issuance this year so far at just over $31 billion, which is well in-line with the expected final year total of $40 billion.
The largest issue of the month was by EDF. The French energy company raised $1.25 billion in what was the largest US dollar-denominated green bond ever. The bonds were offered at an annual coupon rate of 3.65% and a maturity period of 10 years, and was underwritten by some of the leading global banks and financial institutions. This was the second green bonds issue by EDF, with the funds raised from the first bond issue used for finance ten wind projects, two solar PV projects, and biogas projects across the US, France, and Canada. The proceeds of this latest issue would also be used to finance renewable energy projects.
October also saw the first renminbi-denominated green bond issuance. The Agriculture Bank of China issued the first green bond by a state-owned Chinese bank, with the Bank raising a total of $994.5 million through a three-part issuance in London.
Several institutions made repeat issuances in October. Credit Agricole CIB issued Uridashi a green bond for retail investors in Japan; SolarCity Corp raised $25 million in new issuance; and Swedish real estate company Vasakronan AB also issued new bonds, raising $60 million.
The Overseas Private Investment Corporation issued green guarantee worth $13.8 million for a 70 MW solar PV project in Chile. Sumitomo Mitsui Banking Corp issued $500 million green bonds to finance renewable energy and energy efficiency projects in Japan.
Climate Bonds Initiative also stated that German development bank KfW is expected to issued green bonds worth €1.5 billion with 5-year maturity.