The Sustainable Economy

  • Prasac trims pricing on loan return

    Prasac trims pricing on loan return

    Cambodia’s Prasac Microfinance Institution has returned to the loan market for $200m, narrowing pricing by 35bp compared to its last transaction in 2020.

  • Biden infrastructure plan boosts equipment ABS outlook

    Biden infrastructure plan boosts equipment ABS outlook

    The $2tr infrastructure plan proposed by president Joe Biden is now under review in Congress, where it is expected to go through a process that will reduce its scope and size. The comprehensive terms of the bill include plans to create millions of jobs in agriculture and construction, which will serve as a boon to the equipment ABS sector.

  • IMF ramps up focus on climate, launches innovative database

    IMF ramps up focus on climate, launches innovative database

    Climate change will become much more prevalent in the International Monetary Fund’s work this year, including its assessments of countries’ financial stability, after sustained complaints that it has not paid enough attention to global warming. Ways to link debt relief to climate action will take longer to implement.

  • Dutch metals firm AMG reaps benefits of EV surge

    Dutch metals firm AMG reaps benefits of EV surge

    AMG Advanced Metallurgical Group (AMG) found strong demand for a €102m capital raise on Thursday night from investors keen to back the growing demand for lithium, stoked higher by increased global production of electric vehicles.

  • Opdenergy to float in Spain

    Opdenergy to float in Spain

    Renewable energy IPOs are being launched thick and fast in Spain despite the recent selloff of green energy stocks.

  • Neoen shows investor demand for top green equities

    Neoen shows investor demand for top green equities

    Neoen, the French renewable energy company, said on Wednesday that it had received huge levels of demand for its €600m rights issue, proving that the right companies in the renewable energy sector can still attract a strong following among equity investors despite recent turbulence in green stocks.

  • Paragon jumps ahead on phase-out of non-green BTL mortgages

    Paragon jumps ahead on phase-out of non-green BTL mortgages

    The UK government is planning to tighten the energy efficiency ratings required for buy-to-let mortgages, phasing in the changes through to 2028, but some mortgage lenders are implementing the rules early. The result could mean more collateral for green structured finance transactions as well as a lower risk of default.

  • Energy storage fund lines up £194m placing

    Energy storage fund lines up £194m placing

    Gore Street Energy Storage Fund, a close-end investment fund that invests in UK energy infrastructure assets, has launched a new capital raise to fund a pipeline of energy storage investments.

  • Fossil IPOs have been shockers, green equities only scratch the surface

    Fossil IPOs have been shockers, green equities only scratch the surface

    The equity markets have ploughed nine times more capital into fossil fuels than green energy in the past decade, and lost $120bn as a result. The tide is turning, but the amounts going into clean power are still pitifully small compared with the needs, according to research by Carbon Tracker this week.

  • Nationwide study shows green mortgages are less risky

    Nationwide study shows green mortgages are less risky

    A study of 657,000 UK mortgages undertaken by Nationwide Building Society over the past year suggests that the greener building a mortgage is secured on, the lower the risk of default. Moreover, this relationship is not affected by a borrower’s wealth, the location, or the type of property.

  • Renew boosts PACE ABS volume in shrinking sector

    Renew boosts PACE ABS volume in shrinking sector

    Residential Property Assessed Clean Energy lender Renew Financial is returning to the ABS market after a two year hiatus, adding volume to a sector that continues to shrink owing to regulatory headwinds and a preference for private placements.

  • Friedrich Vorwerk sets IPO offer price

    Friedrich Vorwerk sets IPO offer price

    Germany's IPO renaissance is continuing with the flotation of Freidrich Vorwerk, the energy infrastructure construction company, which is due to price later today.

  • Schwarzenegger to sea cucumbers: $750m fund to bridge climate gulf

    Schwarzenegger to sea cucumbers: $750m fund to bridge climate gulf

    An innovative collaboration between six organisations from different sectors has led to the creation of the Subnational Climate Finance Initiative, which will work with local governments in developing countries to fund green infrastructure. The scheme highlights the value — but also the difficulty — of blended finance.

  • Big bid for green stocks as EU vaccine woes continue

    Big bid for green stocks as EU vaccine woes continue

    Europe’s slow rollout of Covid-19 vaccines is beginning to damage confidence in a quick economic rebound this year, leading some investors to step back from value trades in pandemic-exposed cyclical stocks and enter new positions in high-growth momentum trades, particularly renewable energy stocks.

  • ECBC’s Bertalot sees scope for better reg treatment of green mortgages

    ECBC’s Bertalot sees scope for better reg treatment of green mortgages

    Sustainability is likely to have a pivotal place in prudential discussions and properties secured on energy efficient mortgages could be in line for more favourable treatment than vanilla ones, the European Covered Bond Council and European Mortgage Federation’s secretary general, Luca Bertalot told GlobalCapital.

  • Fury as EC considers letting gas into Taxonomy

    Fury as EC considers letting gas into Taxonomy

    Environmentalists were outraged on Thursday to learn from a leaked document that the European Commission is considering the option of including some gas power stations in its Taxonomy of Sustainable Economic Activities.

  • Third party sponsored ABS returns in PACE

    Third party sponsored ABS returns in PACE

    A Florida-based asset manager is issuing a PACE securitization under the HERO platform — a well-known name used by the now-bankrupt issuer Renovate America. This dual structure, where the originator and sponsor are two different entities, is not uncommon in ABS, but when it is used for securitizing PACE, it is often a symptom of instability and the distress the market faces, sources say.

  • ECP refis 1.34GW of UK gas turbines

    ECP refis 1.34GW of UK gas turbines

    Energy Capital Partners, a UK private equity company, has signed £192m in loans and trade finance facilities, refinancing debt for gas turbines that have been linked to the transition to carbon neutrality in the UK.

  • IRFC’s bond plans grind to a halt

    IRFC’s bond plans grind to a halt

    Indian Railway Finance Corp postponed its dual-tranche dollar bond offering on Monday when faced with a volatile market backdrop that ‘bamboozled’ the banks running the deal.

  • Trio of solar ABS push issuance past $1bn

    Trio of solar ABS push issuance past $1bn

    Loanpal, Solar Mosaic and Sunrun have all returned to the securitization market in the span of two weeks, ramping up first quarter volumes to over $1bn for the first time ever. Sources expect solar loan origination and demand to significantly increase in 2021 as the asset class provides a clear cut way to fulfill investors’ ESG criteria.

  • UK RMBS vulnerable to Grenfell cladding fallout

    UK RMBS vulnerable to Grenfell cladding fallout

    UK RMBS could see marginal losses from the government’s Grenfell inquiry pushing the cost of removing flammable cladding on up to 1.5m flat owners across the country, after DBRS Morningstar research revealed on Monday that repossessions could eat into securitized mortgage portfolios.

  • 'Everything else is secondary' to debt transparency as Zambia-IMF talks extended

    'Everything else is secondary' to debt transparency as Zambia-IMF talks extended

    The IMF and Zambia will continue their negotiations about a package to put the country on a path to financial stability, the Fund said on Thursday, after the deadline for initial talks had passed the day before with no deal agreed. But market participants are still demanding more transparency over the defaulted sovereign's external debts.

  • UK’s ‘KfW’ to be major capital markets player

    UK’s ‘KfW’ to be major capital markets player

    Senior market participants welcomed the announcement of the UK Infrastructure Bank’s creation in this week’s Budget speech. While it is unlikely to tap capital markets in the near future, bankers hope the bank will evolve into a major government agency borrower that prints socially responsible bonds to help in the UK’s goal to reach net zero carbon emissions by 2050.

  • Railcar ABS issuance surpasses 2020 volume

    Railcar ABS issuance surpasses 2020 volume

    The railcar securitization market has comfortably exceeded last year’s issuance volume already with the addition of Napier Park, a New York based alternative asset management platform. Bolstered by strong investor appetite for yieldy paper, railcar ABS deals will continue to be well subscribed and in high demand, sources say.

  • UK’s green Budget ‘underwhelming’ as gaps, contradictions appear

    UK’s green Budget ‘underwhelming’ as gaps, contradictions appear

    The UK’s Budget on Wednesday is likely to go down as the greenest ever, but it still left sustainable finance advocates disappointed, as Rishi Sunak, the chancellor of the exchequer, failed to give clarity on vital programmes and spending, at the beginning of a decade in which the country will have to make vital investments towards achieving its ambition of net zero greenhouse gas emissions by 2050.

  • Solar activity flares up with Mosaic ABS

    Solar activity flares up with Mosaic ABS

    US residential solar company Solar Mosaic is returning with a securitization backed by a pool of prime consumer loans. The issuer surpassed $4bn in loans funded through its platform in February, and hopes to continue pushing the solar asset class into the mainstream.

  • Rusal gets funding from Russian banks for smelting project

    Rusal gets funding from Russian banks for smelting project

    Rusal, the Russian aluminium company, has arranged a 15 year syndicated loan from a consortium of local lenders. Funds will support the development of a smelting project in Siberia, which the company claims is environmentally friendly.

  • EBA proposes green asset ratio for EU banks

    EBA proposes green asset ratio for EU banks

    The European Banking Authority has proposed the introduction of a green asset ratio for EU financial institutions, which would measure the share of EU Taxonomy-aligned assets on bank balance sheets.

  • Soltec bumps up bank debt after IPO

    Soltec bumps up bank debt after IPO

    Soltec, a Spanish solar tracker company, has refinanced its main syndicated bank loan, almost doubling the size of its bank facilities four months after the company publicly listed.

  • EV charging firm Fastned sells €150m of stock

    EV charging firm Fastned sells €150m of stock

    Fastned, the Dutch operator of charging stations for electric cars, has raised €150m to finance an expansion of its network across Europe, at the end of a wild week for tech and green energy stocks.

  • Gangfeng Lithium digs up plans for placement

    Gangfeng Lithium digs up plans for placement

    Chinese company Gangfeng Lithium Co is gearing up to tap equity investors for as much as HK$4.9bn ($632m) from a private placement of its Hong Kong-listed shares, as it looks to raise money to expand some of its projects and investments.

  • Nuveen acquires C-PACE provider Greenworks Lending

    Nuveen acquires C-PACE provider Greenworks Lending

    Nuveen is breaking into the property assessed clean energy (PACE) market through its acquisition of Greenworks Lending. According to Nuveen, this is the outcome of a long-term relationship it has forged with Greenworks since 2017, when the lender issued the first ever C-PACE securitization with Nuveen as the lead investor.

  • Starmer’s recovery bond idea deserves a chance

    Starmer’s recovery bond idea deserves a chance

    UK Labour Party leader Keir Starmer has proposed a “British Recovery Bond” — a retail government issue that would be used to finance SME lending to help kick-start the economic recovery from the coronavirus pandemic. It can be tempting to dismiss such measures as political posturing, but there are some genuine advantages to the proposal, and it deserves its day.

  • SoCalEd prices wildfire recovery ABS

    SoCalEd prices wildfire recovery ABS

    Southern California Edison has priced its first securitization in more than 20 years, the proceeds of which it will use to finance upgrades and other costs associated with its wildfire prevention program.

  • People moves in brief

    People moves in brief

    HSBC chooses chief sustainability officer — JP Morgan creates European unit for Spacs — Piero Novelli to quit UBS

  • UK green equity issuance grows in another good week

    UK green equity issuance grows in another good week

    The momentum behind green equity capital markets built further this week in the UK, with the latest deal from Greencoat UK Wind and the opening of books on the London flotation of NextEnergy Renewables, the solar power company.

  • Oil recovers but EM petro states warned to diversify funding as revenues plunge

    Oil recovers but EM petro states warned to diversify funding as revenues plunge

    Despite a modest recovery in oil markets after an unprecedentedly volatile period last year, hydrocarbon-dependent emerging market governments are being warned to diversify urgently, amid estimations that a multi-trillion dollar revenue gap looms over some of the most vulnerable oil exporters. Capital markets must play a critical role in that transformation, say industry experts.