30 March 2020
Credit Agricole CIB (CACIB) helped bring four new sovereign green bond issuers to the market in 2019.
- The Netherlands in May 2019 issued a €6 billion green bond– the first green bond from a AAA rated sovereign issuer. CACIB acted as independent green consultant for the state.
- Hong Kong SAR Government raised $1 billion in May 2019, as part of its HKD100 billion green bond programme, as it seeks to become a global "green financial hub". It had a second party opinion from Vigeo Eiris. CACIB acted as structuring advisor and as joint global coordinator, bookrunner and lead manager.
- The Republic of Korea issued a dual-tranche $500 million green and sustainability bonds as part of its Foreign Exchange Stabilisation Bonds. CACIB acted as co-structuring advisor and as joint bookrunner in the inaugural transaction. This was the first green and sustainability bond ever issue6 billd by a sovereign.
- Republic of Chile issued €861 million of 12-year Green Bonds in June 2019, becoming the first sovereign green bond issuer in the Americas in euros. Credit Agricole, which was green coordinator and a bookrunner, advised the Ministry of Finance on the drafting of the Green Bond Framework and in securing a Second Opinion from Vigeo Eiris and certification from the Climate Bonds Initiative.
The awards judges praised the managers' "creativity and solid framework with sovereign issuers".
Including the four new sovereign issuer in the year, a total of eight countries issued in 2019, raising a combined total equivalent to €15 billion, or 9% of the value of total green bond issuance in the year, says CACIB.
CACIB expects sovereigns to be the key engine for 2020, bringing 14% of total supply in 2020.