Here is a quick summary of two interesting repeat issuances from the last few weeks.
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World Bank issued a USD 50m 2 year callable green bond to meet investor demand from California State Teachers Retirement System (CalSTRS). The coupon is floating at 3-month USD LIBOR + 0.10% per annum. The sole underwriter for the deal was Barclays.
CalSTRS is the largest teachers’ pension fund in the US, with US$186.4bn assets under management, and a member of the Climate Bonds Standards Board. Earlier this year CalSTRS signed the Investor Statement on Green Bonds and Climate Bonds; showing their commitment to this market.
Issuing green bonds for a specific investor is a trend that we have seen develop over the last year. Some examples we have seen so far include; AfDB issued a green bond for Storebrand, World Bank for California State and IFC for RIMAC Seguros. This shows the demand from large investors who are looking for green investment opportunities.
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OPIC issued another two green government-guaranteed Certific
The garanties are $24.4m and $2.1m both with 19 years tenor. The larger ($24.4m) guaranty has a fixed quarterly coupon of 3.16% and the smaller ($2.1m) guaranty has a floating T-bill quarterly coupon. The underwriter was Bank of America Merrill Lynch.
Proceeds from both garanties will go towards the PV Salvador.