Deutsche Bank

The socially responsible investor base is growing nicely, as is its diversity in terms of geography and types. But growth could be about to hit warp speed as governments and regulators wake up to the sector. Craig McGlashan reports.

With only $25bn of green bonds issued so far, volumes of SRI instruments in 2015 are a little disappointing. Predictions at the beginning of the year that $100bn of green bonds would be issued in 2015 are likely to be wide of the mark, with many now saying the end of year total could struggle to match 2014’s $37bn. But few in this developing market are downhearted, preferring to see 2015 as a year of consolidation and necessary adjustment as the product reacts to poor general market conditions and begins to mature. In fact, despite the low volumes, progress is being made. The issuer base is beginning to expand beyond the confines of the public sector, as more banks join the list of issuers. Emerging market companies are also turning to the market, such as Brazil’s BRF with a €500m deal in June. Meanwhile, the investor base is growing in a healthy fashion, with Barclays and Deutsche pledging to invest £1bn and €1bn respectively in green bonds. As for 2016, expectations are that volumes will bounce back, with companies and municipalities leading the charge, along with more banks and emerging market issuers from Latin America. These topics and many more were discussed at GlobalCapital’s SRI roundtable in New York in mid-September.

From wind energy to improving inadequate education systems, there is no lack of need for SRI financing in Latin America. LatAm may be unlikely to see the rapid emergence of a mainstream green bond market, but there is no shortage of invention or hard work across the region to ensure it is not left behind. Oliver West reports

The year 2015 has seen important progress in the field of green bond investment in Asia, with the emergence of two big new markets — China and India. For its Tokyo roundtable, GlobalCapital invited a panel of issuers, investors, analysts and bankers to discuss the trends in the sector and the potential for development as new markets open up for the asset class across the region.

Corporate and FIG green bonds had a breakthrough year in 2014 and there have been several deals already this year. But with banks facing a flood of new regulations and the cost of reporting putting some corporations off the idea of printing green bonds, the two sectors face challenges not endured by SSA issuers. There are, however, still plenty of reasons to be optimistic about the future of corporate and FIG green bonds. GlobalCapital brought together corporate and FIG funding officials, bankers and green bond experts London for a roundtable discussion on how 2015 has fared — and what 2016 will bring.

US automotive components supplier BorgWarner is looking to issue its first notes in euros, and could be followed by others as the European market leaves behind memories of the Greek crisis, say bankers.

Gazprom has released roadshow dates for a euro bond, but is going ahead with the meetings without Deutsche Bank on the mandate.

GlobalCapital's European SRI roundtable for 2015 brought together issuers, investors and bankers to discuss how to tackle the capital markets challenges of sustainable and responsible investment.

The leads on HM Sampoerna’s Rph20.8tr ($1.4bn) follow-on have told investors that the trade is covered across the price range, after the Indonesian unit of Philip Morris International attracted a slew of long-only investors.

Responsible investing sounds clear enough, but there is a bewildering range of approaches. You can build up green portfolios or search for value across all your assets. Yet there is no doubt: responsible investing is on the march. Jon Hay reports.

Hapag-Lloyd announced on Monday its intention to float in Frankfurt, as it finally launched a deal which had been in the pipeline for a very long time.

Swedbank and SR Boligkreditt defied tricky market conditions this week to respectively raise €1.25bn and €500m in five year covered bonds.