A consortium of investment banks today announced their support of the
Green Bond Principles – Bank of America Merrill Lynch, Citi, Crédit
Agricole Corporate and Investment Banking, JPMorgan Chase, BNP Paribas,
Daiwa, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan
Stanley, Rabobank and SEB. These Principles were developed with guidance
from issuers, investors and environmental groups and serve as voluntary
guidelines on recommended process for the development and issuance of
Green Bonds. They encourage transparency, disclosure and integrity in
the development of the Green Bond market.
These Green Bond Principles suggest process for designating, disclosing,
managing and reporting on the proceeds of a Green Bond. They are
designed to provide issuers with guidance on the key components involved
in launching a Green Bond, to aid investors by ensuring the availability
of information necessary to evaluate the environmental impact of their
Green Bond investments and to assist underwriters by moving the market
towards standard disclosures which facilitate transactions.
These Principles build on first-to-market issuances by multilaterals and
provide a platform for other future Green Bond issuers to direct funding
to Green Projects. They are complemented by an appendix of established
definitions of Green Project categories that were developed by
multilaterals, non-profit and non-government organizations, and other
relevant stakeholders. Read more about the Green Bond Principles here.
The four banks that served as a drafting committee for these Principles
– Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and
Investment Banking and JPMorgan Chase – will propose in 2014 a
governance process that will allow for diverse stakeholder input into
the Green Bond Principles. It is anticipated that an independent third
party will be designated to serve as a secretariat whose administrative
duties will include facilitating information exchange with issuers,
investors, underwriters, and other stakeholders such as non-profit
environmental organizations, non-government organizations, academics and
other thought leaders.
COMMENTS FROM SUPPORTING BANKS:
Bank of America
“The development of a robust and liquid market for green bonds is an
important progression for debt markets,” said Suzanne Buchta, Global
Co-head of Green Debt Capital Markets at BofA Merrill. “In co-authoring
these principles we attempt to help standardize the product and we hope
to catalyze investment into environmentally sustainable projects,
something to which our firm is very committed.”
Citi
“Citi is proud to be a co-founder of the Green Bond Principles as a
voluntary guideline for bond issuers who are deploying capital to
environmentally beneficial purposes,” said Michael Eckhart, Citi’s
Global Head of Environmental Finance. “Our experience placing Green
Bonds to date suggests that this will be a helpful guideline for
corporate and public sector issuers.”
Crédit Agricole CIB
Tanguy Claquin, Managing Director at Crédit Agricole CIB commented, “We
are very pleased to have co-authored and announced the establishment of
the Green Bond Principles. This is an important first step towards a
more coherent approach to the market of Green and Sustainability Bonds,
which will ultimately increase its attractiveness for investors thus
encouraging investments into sustainability projects.”
JPMorgan Chase & Co.
“Increasing the amount of capital targeted to address pressing
environmental challenges such as climate change is critical," said
Marilyn Ceci, Managing Director in the Corporate & Investment Bank at
JPMorgan Chase. “JPMorgan Chase is pleased to have co-authored the Green
Bond Principles, which involved strong collaboration among colleagues in
our Corporate & Investment Bank and Environmental Affairs office. By
providing transparency and integrity to the Green Bond market and
bolstering investor confidence, we expect the Green Bond Principles will
expand capital allocation to projects that provide environmental
benefits.”
BNP Paribas
“BNP Paribas is proud to partner with our fellow institutions to support
the development of a robust Green Bond Market. Today’s announcement is a
crucial early step to foster the creation of a new transparent
marketplace for socially responsible capital-raising and investment,”
said Jim Turner, Head of Debt Capital Markets for North America.
Daiwa
“The GBP is a wake-up call. It will help bring this most important
product and its message to the forefront and into the mainstream bond
world,” said Jose Padilla, Head of US Debt Capital Markets at Daiwa.
Deutsche Bank
“As a carbon neutral bank, Deutsche Bank believes that the new
Principles will play an important role in unlocking the green market
capital necessary to finance the transformation to a cleaner and more
sustainable future. We are pleased to be part of this collaborative
effort,” said Hakan Wohlin Deutsche Bank’s Global Head of Debt
Origination.
Goldman Sachs
“We are excited about continued developments in the area of green bonds
as an important mechanism through which we can help harness the deep and
liquid fixed income capital base for environmentally beneficial
solutions,” said Martin Weber, Head of SSA and Growth Markets
Origination. “Goldman Sachs has had a long standing commitment to
furthering market-based solutions to address critical environmental
issues and we look forward to helping further catalyze financing and
investments.”
HSBC
“The Green Bond market grew fivefold last year, with USD10 billion
raised by the public sector, corporates and financial institutions. The
Green Bond Principles are an excellent initiative to increase
transparency and disclosure in this market, and to foster continued
growth in investments which help combat climate change," said Ulrik
Ross, Managing Director at HSBC.”
Mizuho
Mark Wheatcroft, Head of Debt Capital Markets at Mizuho International
commented: “Mizuho is proud to support the development of the Green Bond
Principles, which will act as a measure of quality assurance for all
involved in this exciting and developing market.”
Morgan Stanley
“Morgan Stanley is proud to be one of the leading underwriters of Green
Bonds, with USD 4.75 billion of issuance across 7 Supranational, Agency
and Corporate deals in 2013,” said Navindu Katugampola, Vice President
at Morgan Stanley. “We believe that the Green Bond Principles will help
act as a catalyst to develop this rapidly growing market, by providing a
clear set of voluntary guidelines for issuers, investors and
underwriters. We are exceptionally pleased to support this effort as
part of our overall commitment to sustainable finance.”
Rabobank
“The world faces enormous challenges in the next 40 years. It needs
investments that are not only large scale but also focused: financing
sustainable food production and supply, growing energy demands,
sustainable basic materials and more. Rabobank is proud to be part of
the Green Bonds Principles and to be able to contribute to the future
developments in this initiative. We will use our knowledge of amongst
others sustainable agriculture, food & beverage sectors, renewable
energy and developments in the biobased and circular economy. Having
been involved in several sustainable Green Bonds we are convinced this
will be of help to grow this important market,” said Marco Roddenhof,
Global Head Capital Markets Rabobank International.
SEB
“It has been a great pleasure, as a co- founder of the green bond
market, to take part in the ongoing development of the market and
thereby acknowledge the trust we have been shown by our investors and
the issuers we represent. We believe the principles will secure a common
understanding and thereby create the homogenous market development
needed to allow further growth,” said Christopher Flensborg, Head of
Sustainable Products and Product Development at SEB.
INFORMATION ON SUPPORTING BANKS
Bank of America
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small- and middle-market businesses and
large corporations with a full range of banking, investing, asset
management and other financial and risk management products and
services. We serve approximately 51 million consumer and small business
relationships with approximately 5,200 retail banking offices and
approximately 16,200 ATMs and award winning online banking with 30
million active users and more than 14 million mobile users. Bank of
America is among the world's leading wealth management companies and is
a global leader in corporate and investment banking and trading across a
broad range of asset classes, serving corporations, governments,
institutions and individuals around the world. Bank of America offers
industry-leading support to approximately 3 million small business
owners through a suite of innovative, easy-to-use online products and
services. The company serves clients through operations in more than 40
countries. Bank of America Corporation stock (NYSE: BAC) is listed on
the New York Stock Exchange.
Citi
Citi, the leading global bank, has approximately 200 million customer
accounts and does business in more than 160 countries and jurisdictions.
Citi provides consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, securities
brokerage, transaction services, and wealth management. Additional
information may be found at www.citigroup.com
| Twitter: @Citi | YouTube: www.youtube.com/citi
| Blog: http://new.citi.com
| Facebook: www.facebook.com/citi
| LinkedIn: www.linkedin.com/company/citi
Crédit Agricole CIB
Crédit Agricole CIB is the Corporate and Investment Banking arm of the
Crédit Agricole Group, the world’s fifth largest bank by total assets
(The Banker, July 2013).
Crédit Agricole CIB offers its clients a comprehensive range of products
and services in capital markets, investment banking, structured finance
and corporate banking.
The Corporate and Investment Bank is structured around four major
divisions:
-
Client Coverage & International Network and Global Investment Banking
-
Structured Finance
-
Global Markets Division
-
Debt Optimisation & Distribution.
The Bank provides support to clients in large international markets
through its network with a presence in major countries in Europe,
America, Asia and the Middle East.
For more information, please visit its website at www.ca-cib.com.
JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.5 trillion and operations worldwide. The Firm is
a leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing,
asset management and private equity. A component of the Dow Jones
Industrial Average, JPMorgan Chase & Co. serves millions of consumers in
the United States and many of the world’s most prominent corporate,
institutional and government clients under its J.P. Morgan and Chase
brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
BNP Paribas
BNP Paribas Corporate and Investment Banking (CIB) is a leading provider
of solutions to a wide range of clients including corporates,
sovereigns, financial institutions and investors worldwide.
Approximately 19,000 professionals in 45 countries provide clients with
personalized services for managing their risks and assets, financing and
expanding their business and servicing their operational needs.
BNP Paribas CIB excels in:
Corporate Banking - where it has leading franchises in Transaction
Banking (trade finance, cash management) and in Specialized Financing
(energy & commodities, transportation, export, project, leveraged, media
telecom, corporate acquisition finance and real estate)
Derivatives - where it is one of the leading global players in interest
rates, credit, foreign exchange, commodity and equity derivatives.
Advisory and Capital Markets - where it is a top European house in ECM
and a global leader in DCM (bond, convertibles and equity issuance)
www.cib.bnpparibas.com
Daiwa
Daiwa Capital Markets is the international investment banking arm of
Japan's Daiwa Securities Group. Daiwa Capital Markets works in close
collaboration with Daiwa Securities in Japan and other Daiwa companies
globally. As one of the leading, comprehensive financial service firms
in Asia, Daiwa Securities Group operates core businesses such as Retail,
Global Markets, Global Investment Banking, Asset Management, and
Investment.
Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global investment banking,
securities and investment management firm that provides a wide range of
financial services to a substantial and diversified client base that
includes corporations, financial institutions, governments and
high-net-worth individuals. Founded in 1869, the firm is headquartered
in New York and maintains offices in all major financial centers around
the world.
HSBC
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 6,600 offices in 81 countries and territories in Europe, the
Asia-Pacific region, North and Latin America, and the Middle East and
North Africa. With assets of US$2,693bn at 31 December 2012, the HSBC
Group is one of the world’s largest banking and financial services
organisations.
Mizuho
Mizuho Securities Co. Ltd. is the securities and investment banking arm
of the Mizuho Financial Group, one of the world’s largest financial
services companies. Head-quartered in Tokyo with a global network of
offices, Mizuho Securities offers a wide range of services including
sales and trading in both debt and equity securities, the underwriting
of new issues, M&A advisory and securities lending services.
Morgan Stanley
As a leading global financial services firm providing a wide range of
investment banking, securities, investment management and wealth
management services, Morgan Stanley is committed to harnessing the power
of capital markets to achieve sustainability for clients, communities
and stakeholders. Morgan Stanley’s Institute for Sustainable Investing
seeks to mobilize capital to address pressing global challenges and
identify market-based, scalable solutions. For more information about
the Morgan Stanley Institute for Sustainable Investing, visit http://www.morganstanley.com/sustainableinvesting.
Rabobank
The Rabobank Group is one of the world’s leading, sound and sustainable
financial institutions. With our roots in the Netherlands, the Rabobank
Group has grown in recent decades into an international financial
services provider that has activities in the field of banking, asset
management, leasing, insurance and real estate.
SEB
SEB is a leading Nordic financial services group. As a relationship
bank, SEB in Sweden and the Baltic countries offers financial advice and
a wide range of financial services. In Denmark, Finland, Norway and
Germany the bank's operations have a strong focus on corporate and
investment banking based on a full-service offering to corporate and
institutional clients. The international nature of SEB's business is
reflected in its presence in some 20 countries worldwide. On September
30, 2013, the Group's total assets amounted to SEK 2,569 billion while
its assets under management totalled SEK 1,427 billion. The Group has
about 16,000 employees. Read more about SEB at www.sebgroup.com.
Copyright Business Wire 2014