Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Why is the green bond market becoming so successful?
Andy Fewings and Michelle Davies of Eversheds say this source of funding will continue to grow as the renewable sector matures and the emerging markets become less risky.
Briefly, what is the background to green bond insurance and how does it work?
Green bonds are bonds which are issued to raise finance for environmentally friendly projects, such as low carbon/energy efficiency projects, onshore wind and ground mounted solar projects. Since the first bonds were created in 2008 by the World Bank and Swedish Bank, SEB, they have gained momentum and are expected to grow at an increasing rate, which is why a consortium of leading banks (including Bank of America, JP Morgan and Citigroup) have recently issued guidelines to ensure integrity is maintained in the green bond market.
An institution issues the green bond to investors and has a maturity date and a coupon which reflects the return on investment for the subscribers to that bond. Funds raised are then invested in green projects—such as those referred to above.
Why is the market of green bonds so successful at the moment?
A combination of factors:
• bonds are a much cheaper way of raising capital
• renewable technologies are maturing to a degree that they are able to attract this type of funding
• renewable energy is recognised as a viable energy source which can provide energy security and reduce energy poverty via distributed energy solutions—this is important for bonds which are raising capital to assist in less developed markets eg Africa
Green bonds are given a rating by a ratings agency and are backed by entities such as the European Investment Bank, Zurich and EDF. They are issued in sufficient quantities to be easily tradeable and procure investment from portfolio investors—which means they have a much more diverse investment pool.
They are attractive to institutional investors,
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234