The Sustainable Economy

  • AC Energy prices $256m follow-on at low end

    AC Energy prices $256m follow-on at low end

    Philippines-based renewable power producer AC Energy has generated Ps12.4bn ($256.3m) in fresh equity, pricing a sale of new shares at the bottom of the marketed range, according to a source familiar with the matter.

  • Explosion of clean energy to upend economy, but may not be fast enough

    Explosion of clean energy to upend economy, but may not be fast enough

    The economic potential of renewable energy is awesome, and should make fossil fuels obsolete by 2050, according to a new study by Carbon Tracker. But despite the compelling cost arguments for renewables, an enormous political effort will still be needed to accelerate their adoption if disastrous climate change is to be avoided.

  • Risk transfer to grow as Covid weighs on EM balance sheets

    Risk transfer to grow as Covid weighs on EM balance sheets

    Structured transactions that transfer risk from banks’ balance sheets are set to grow in emerging markets as their financial systems become more sophisticated and lenders try to deal with losses caused by the Covid-19 pandemic. Multilateral development banks are playing a central role — they aim to stimulate private sector interest, even if sometimes investors resent their involvement. Jon Hay reports.

  • New London IPO offers exposure to shipping recovery

    New London IPO offers exposure to shipping recovery

    Taylor Maritime Investments, a new London investment trust, has launched an IPO on the London Stock Exchange with the aim of offering investors a chance to invest in the recovery of the global shipping industry after the Covid-19 pandemic.

  • IFC doubles Agricole risk transfer, expects wave of EM deals

    IFC doubles Agricole risk transfer, expects wave of EM deals

    Crédit Agricole has struck a new synthetic risk transfer deal with the International Finance Corporation, in which it will shed about 90% of the risk on $4bn of emerging market trade finance loans. The IFC expects to use securitization more to help banks in developing countries cope with the effects of the coronavirus pandemic.

  • Neoen CFO shows the way to green investors’ hearts

    Neoen CFO shows the way to green investors’ hearts

    Neoen, the French renewable energy company, completed a €600m rights issue at the start of April to help fund it until 2025. Its CFO, Louis-Mathieu Perrin, spoke to GlobalCapital about the deal and explained how green equity stories can still win investors’ attention, despite a recent cooling off in stock valuations.

  • AC Energy launches Ps12bn share sale

    AC Energy launches Ps12bn share sale

    AC Energy Corp, a Philippine renewable power producer, has kicked off a follow-on offering of primary and secondary stock, eyeing up to Ps12.4bn ($256.4m).

  • Europe’s review of EIB and EBRD veers toward status quo

    Europe’s review of EIB and EBRD veers toward status quo

    The long-running debate in the European Union about how to optimise its development finance effort and strengthen its role in sub-Saharan Africa is tending towards the most basic of the possible options: closer collaboration between the European Investment Bank and the European Bank for Reconstruction and Development.

  • 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.