Net Zero Investor 9/4 - 9/10 - Capital for Climate

Individual Deals and Market Watch

Spain is set to raise 5 billion euros ($5.9 billion) from its debut green bond, according to two people familiar with the matter, the first in a flurry of sovereign sales expected this month. The deal for the 20-year note, one of the people said, asking not to be identified due to internal policy.

Jo Bamford, the heir to JCB, is organising a £1bn fund aimed at placing the UK forward within the international race to manufacture environmentally pleasant hydrogen.
The proprietor of Ryze Hydrogen and Wrightbus has joined forces with funding company Vedra Partners to develop the fund, Hycap, which has already raised £200m.

Adani Green Energy NSE 4.98 % Ltd (AGEL) has listed its USD 750-million foreign currency green bonds on India INX's Global Securities Market platform. Adani Green Energy Ltd has listed its maiden USD 750-million green bonds with a 3-year maturity at a competitive coupon of 4.375 per cent, India INX said in a statement.

The pension fund for the borough of Newham, in east London, has invested around £520m (€605m) in a newly launched global equity fund that tracks an index meeting EU Paris-aligned Benchmark (PAB) standards.
Run by Legal & General Investment Management (LGIM), the fund has also gained support from unnamed Irish pension investors, and Legal & General’s alternative asset platform, Legal & General Capital, has invested £100m.

Foresight Sustainable Forestry Company PLC said it seeks to raise 200 million pounds ($277.2 million) with an initial public offering on the London Stock Exchange.
Foresight Sustainable Forestry, which was incorporated on Aug. 31 this year, said it targets a net asset value total return of more than 5% above the consumer price index per year on a rolling five-year basis.

The value of the Nigerian green bonds market has grown to N49.19 billion, recording four issuance in the last three years since the debut issuance by the Federal Government in 2017.
The Chief Executive Officer (CEO) of the Nigerian Exchange Limited (NGX) Mr. Temi Popoola, disclosed this at a retail investors webinar with the theme: “Sukuk and Green Bonds: More than just Investing”, organised by the exchange.

Macro Commitments

The European Commission said on Tuesday it would issue up to 250 billion euros in green bonds this fall as part of its plans to finance the 27-nation bloc’s recovery from the coronavirus crisis.
The EU’s executive arm said the bonds will represent 30% of NextGeneratoonEU’s total issuance.
“The framework provides investors in these bonds with confidence that the funds mobilized will be allocated to green projects and that the Commission will report on its environmental impact,” the commission said.

Toyota Motor Corp. plans to spend 1.5 trillion yen ($13.7 billion) on the supply and development of batteries for hybrid and electric vehicles by 2030, joining other global automakers boosting investments in anticipation of greater demand.

The Irish fund plans to commit €1bn to climate-related projects, from energy storage to renewables, over the next five years.
The Ireland Strategic Investment Fund (ISIF), the Government’s sovereign investment vehicle, has published its report for the first half of 2021. It showed investment returns of 5.2pc, an increase of €450m in six months.

Verizon Communications Inc. has emerged as a green-bond heavyweight in the U.S., using its vast network to raise another $1 billion to add more renewable energy to the electricity grid.
The telecom giant’s green-bond financing now stands at $3 billion and counting, with more programmatic issuance expected as Verizon VZ, -0.26% works toward its goal of sourcing 50% of its annual electricity consumption from renewable energy by 2025, and to be net-zero in emissions by 2035.

The UK government is to make GBP270 million ($374 million) available from April 2022 to support low-carbon heat networks using technologies like heat pumps, solar and geothermal energy, the Department for Business, Energy and Industrial Strategy said Sept. 7.
The Green Heat Network Fund is expected to fund 10.3 million tonnes of CO2 savings by 2050 via capital grants, BEIS said.

Volkswagen AG plans to set up a venture capital fund with an initial volume of 300 million euros ($355 million) to invest in decarbonization projects and start-ups.
Carbon capturing is feasible but expensive, and for some new technologies it’s key to broaden operations and being able to scale up, VW Chief Executive Officer Herbert Diess said in a LinkedIn post on Tuesday.

New Zealand-based infrastructure investor Infratil Ltd (NZE:IFT) announced today it is committing USD 233 million (EUR 197m) to create its fourth renewable energy development platform -- Gurin Energy.

Jeff Bezos’ $10 billion Earth Fund just doled out millions more in funding to groups fighting off climate change. This time, a lot of the cash is going to groups that advocate for communities of color and low-income neighborhoods, which often face the first and worst effects of climate change and fossil fuel pollution.

Pathways, Frameworks, Case Studies, Research, Climate Science

Swiss Re Institute, the reinsurance group’s research unit, predicted that climate-related risks would account for just over a fifth of the overall rise in property premiums over the next two decades.
Factors categorised as “economic development”, including inflation and growth in insured assets, are forecast to make up three-quarters of the rise, contributing as much as an extra $616bn of premiums to what the institute expects will become a $1.3tn market.

New Delhi: About 120 climate-tech start-ups have raised equity capital of $1.2 billion over the past five years, according to a recent report.
The report titled ‘Early-stage Climate-tech Start-ups in India: Investment Landscape Report 2021’, said that there was sustained growth in both volume and value of equity deals in the sector between 2016 and 2019, before a dip in 2020, due to the pandemic.

The report, by the Electrification Coalition and Atlas Public Policy (via InsideEVs), found that 97% of the light-duty vehicles and buses in the federal fleet could be replaced with EVs by 2030, and 40% could be made electric by 2025.

Net Zero Investor 9/4 - 9/10