Green Bonds A Growing Investment or Un-standardized Risk?
Green Bonds are debt securities typically issued by development banks, bi-lateral donor agencies, governments, and corporations to fund projects for sustainability and greenhouse gas reduction; including renewable energy, energy efficiency, sustainable waste management, low carbon transportation, water conservation, and others.
The initial investors in Green Bonds were investors such as the California State Teachers’ Pension Fund and Sweden’s AP Pension Fund. Approximately $11 MM in Green Bonds were issued in 2013 and 36MM in 2014 with a prediction that they will account for 10-15% of the corporate-bond market by 2020.
Significant issuers of green bonds include the International Finance Corporation which raised a $1 billion for a Green Bond and The World Bank which raised $550 million, as well as the European Investment Bank (650 EUR million Climate Awareness Bond), and The European Bank for Reconstruction and Development. In addition to these expectations, the Bank of America Merrill Lynch, MidAmerican Energy, France's EDF and other financial firms have issued bonds. In 2013, Unilever, the world’s second-largest consumer-goods firm, issued $415 million Green Bond designed to reducing waste, water use, and greenhouse-gas emissions, Toyota has raised $1.75 billion to help finance car loans for hybrid and electric vehicles and, Zurich Reinsurance plans to invest $1 billion in Green Bonds.
The OECD reports that at present the market is too small to create the required liquidity for institutional investment. Although bankers are enthusiastic about Green Bonds, they emphasize a lack of standardization as a problem. Yet, their popularity continues to grow. In January 2014, a coalition of global banks issuing Green Bonds presented a set of ‘Green Bond Principles’, calling for transparency in such transactions.
Our panel of experts will provide an over-view of Green Bonds and discuss their potential and risks as investment tools for renewable and other sustainable energy and infrastructure projects.
Subjects to be discussed include:
- Green Bonds – Proceeds, Revenue, Project and Securitized Bonds
- Green Asset-Backed Bonds and Impact Bonds
- The Green Bond Market Growth
- Investment Potential and Risks
Stuart K. Fleischmann, Partner
Shearman & Sterling
Robert N. Freedman, Partner
Shearman & Sterling
- The Growing Market for Green Bonds
- 2014 a Tipping Point Year for Green Bond Issuance
- Establishing the Environmental Benefits
- Current Issues for Green Bonds
- Current Market Trends for Green Bonds
Gordon G. Raman, Partner
Borden Ladner Gervais LLP
- Green Bonds, Green Bond Principles & A Canadian Perspective
- Types of Green Bonds
- Green Bond Principles
- Use of Proceeds
- Project Evaluation/Selection
- Management of Proceeds
- Standardized Periodic Reporting
- The Green Bond Principles
- Assurance & Audits
- Canadian Green Bond Examples
- Pricing/Possible Developments
Tatjana Misulic, Of Counsel
Ballard Spahr LLP
- Muni Green Bonds
- What is a Muni Green Bond?
- Why use a Green Bond label?
- Any downsides to a Green Bond label?
- Green Bonds
- initial disclosure
- continuing disclosure
- Muni Green Bond Issuances
- Muni Green Bond Market Results
- Any Lessons to be learned from Bank/Corporate Green Bonds?
- Why standards are important?
- Is one definition possible?
- Growth Potential
- Need for Muni Infrastructure Financing
- Green infrastructure is more cost-effective
- Case Study: Green City, Clean Waters
- Green Bonds are a prime financing vehicle
Who Should Attend:
- Investment Bankers
- Corporate Senior Officers
- General Counsel
- Bond Experts
- Investor Protection Lawyers/Consultants
- Individual investors
- Investment Consultants
Shearman & Sterling finance partner Stuart Fleischmann is described as “very knowledgeable and hands on” by Chambers & Partners and a capital markets “expert” by Legal500. His practice focuses principally on debt and equity offerings by Latin American companies, sovereign nations and quasi-governmental entities. He regularly represents underwriters and issuers, primarily in the oil and gas, steel, telephone, electricity and financial institution industries, on a wide range of SEC registered, 144A/Regulation S and private placements of debt and equity securities. He is also regularly involved in such novel transactions as toll road financings and securitizations involving credit cards, residential mortgages, international oil payments, money transfers and electronic remittances, loan pools, auto and farm equipment loans and leases and franchise revenues. Recently, he co-authored the article “Financing Green: The Rise of the Green Bond” published by Law360.
Shearman & Sterling finance partner Stuart Fleischmann is described as “very knowledgeable and hands on” by Chambers & Partners and …
Lauded by clients for his “superb business acumen and legal understanding,” Shearman & Sterling partner Robert Freedman is recognized as a “highly respected” and leading lawyer in project finance by Chambers & Partners, IFLR 1000 and Legal500, among others. His practice focuses on finance and development, asset acquisitions and dispositions and complex work-outs and restructurings of infrastructure assets, internationally and in the United States. He represents developers, lenders and other parties across the breadth of infrastructure sectors, including power, renewables and sustainable development, oil and gas and transportation. Co-head of the firm’s global Sustainable Development Group, Mr. Freedman recently co-authored the article “Financing Green: The Rise of The Green Bond” in Law360 and is widely quoted in industry, national and international publications, including The New York Times and the Financial Times, on matters relating to renewables and other infrastructure sectors.
Lauded by clients for his “superb business acumen and legal understanding,” Shearman & Sterling partner Robert Freedman is recognized as …
Gordon Raman is a partner in the Toronto office of Borden Ladner Gervais LLP. He is part of the firm’s Debt Capital Markets Group and the Securities and Capital Markets Group and his practice includes a heavy focus on corporate finance. He advises issuers and underwriters in corporate finance transactions of debt securities, including high-yield and securities, and equity securities. The firm’s Debt Capital Markets Group has extensive experience in advising investment banks, corporations, sovereigns, municipalities and rating agencies in international and domestic debt capital markets transactions on a range of products, including Green Bonds, Stand Alone and Programme Bond Issuances, Maple Bonds, Commercial Paper (asset-backed commercial paper) and Project Finance Bonds. Gordon also works closely with senior management and boards of public and private companies in advising them on corporate transactions, corporate governance and securities law requirements. In addition he assists both issuers and investors in capital investments in private companies and private equity firms in fund formation and investments. Gordon speaks and writes regularly in the areas of corporate finance and securities law. The firm’s Debt Capital Markets Group is the largest in Canada and was formed to provide clients with specialised expertise on International and National Debt Capital Markets and Specialist Debt Capital Markets products. Lawyers in the group have even advised the UK Government on implementing the Green Deal.
Gordon Raman is a partner in the Toronto office of Borden Ladner Gervais LLP. He is part of the firm’s …
Tatjana Misulic is of counsel in the Washington, DC office of Ballard Spahr LLP. She advises issuers, underwriters, and borrowers in the structuring, issuance and restructuring of tax-exempt and taxable municipal securities and other debt instruments. Ms. Misulic is experienced in a broad range of financings, including financings for airports, toll roads, infrastructure and other mass transit projects, water and sewer utilities, single and multifamily housing projects, mixed-use and retail development, health care and secondary and higher education facilities. She has extensive experience with short-term and long-term general obligation financings, lease-purchase financings, and revenue-backed financings secured by sales taxes, property taxes, tax increment, system revenues and tolls. Ms. Misulic has also been involved in several project finance/P3 transactions.
Tatjana Misulic is of counsel in the Washington, DC office of Ballard Spahr LLP. She advises issuers, underwriters, and borrowers …
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About Shearman & Sterling
Shearman & Sterling was founded in 1873. The firm is organized as a single, integrated partnership with approximately 850 lawyers with 18 offices in many of the commercial centers around the world. Our lawyers come from some 80 countries, speak more than 60 languages and practice US, English, EU, French, German, Italian and Hong Kong law. In addition, nearly one-half of our lawyers practice outside the United States. From complex cross-border transactions to exclusively local deals, clients rely on our vast international network to help accomplish their business goals.
About Borden Ladner Gervais LLP
Borden Ladner Gervias LLP (BLG) is a leading full-service, national law firm focusing on business law, commercial litigation and arbitration and intellectual property solutions for our clients. With more than 750 lawyers, intellectual property agents and other professionals in five Canadian cities, BLG assists clients with their legal needs, from major litigation to financing and patent registration.
About Ballard Spahr LLP
Ballard Spahr LLP is a national firm of more than 500 lawyers in 14 offices across the country. Our attorneys provide counseling and advocacy in more than 40 areas within our intellectual property, litigation, business and finance, real estate, and public finance departments. We represent a diverse cross-section of clients, ranging from large public companies and privately held corporations to government agencies and nonprofit organizations. Our practices span the life sciences and technology, energy, health care, and other sectors that are driving innovation and growth in today’s marketplace.