2019 Green Bond Market Summary - Climate Bonds Initiative

1 2019 Green bond Market Summary Februrary 2020. 2019 at a Glance Green bond issuance: 2017 - 2019. A new global record: total Green bond 300. issuance*. 51% growth on 2018. 200. USD Billions 1788 Green Bonds from 496 issuers 250 new issuers, bringing a total of 100. 51 jurisdictions, of which 8 are new 0. Dutch State Treasury Agency (Certified Climate 2017 2018 2019. bond ) at ( ) Loan Sovereign Certified Climate Bonds cumulative total passed the Government-backed entity Local government USD100bn Market milestone Development bank Non-financial corporate Financial corporate ABS.

2 2019 Use of proceeds - Evolution Quarterly issuance volume 100%. Unalloc. A&R 2017 2018 2019. 70. ICT. USD Billions 80% 60. Industry Land Use 50. 60%. Waste 40. 40% Water 30. Transport 20. 20%. Buildings 10. 0% Energy 0. 2017 2018 2019 Q1 Q2 Q3 Q4. 2019 Green bond issuance: top 15 countries 60. 50 150. 2019 Cumulative issuance (RHS). 40. USD Billions 100. 30. 20. 50. 10. 0 0. * All charts and analysis are based on latest figures for 2019 issuance volume and number of deals. There are 28 deals still under assessment for inclusion in the CBI Green bond database.

3 Any subsequent variation will be reflected on the Climate Bonds website. 2019 highlights Global Green bond and Green loan issuance reached in 2019, marking a new global record. The Top 3 issuers of 2019. total is up by 51% on the final 2018 figure Fannie Mae the pioneer of issuing agency Green of Mortgage Backed Securities (MBS) remained the largest Green bond issuer in 2019 with Of the total, USD10bn (4%) are Green loans. For issuance (or 9% of the total). inclusion, at least 95% of proceeds must be dedicated to Green assets or projects aligned with the Climate Bonds KfW, the German state-owned development bank, was Taxonomy.

4 The second largest issuer in 2019. It brought a total of USD9bn worth of Green Bonds to Market . Proceeds will The 2019 volume was primarily driven by the European be used to provide financing or co-financing to Market , which accounted for 45% of global issuance. renewable energy and Green building projects. This is followed by the Asia-Pacific and North American The Dutch State Treasury Agency (DSTA) ranked as markets, at 25% and 23%, respectively. In 2019, the the third largest issuer in 2019 with its debut total amount of Green Bonds issued in Europe increased Green sovereign bond .

5 The Certified Climate bond by 74% (or ) year-on-year, reaching a total of meets the requirements of multiple sector criteria under the Climate Bonds Standard, including: Low Carbon Buildings (Upgrades), Low Carbon Transport, Marine USA, China and France continue as top- Renewable Energy, Solar, and Water Infrastructure. ranked countries The USA, China and France topped the country Certified issuance accounted for 17% of rankings once again. Together they accounted for 44% 2019 volumes of global issuance in 2019. US issuers contributed At USD45bn, Certified issuance in 2019 surged by 86%.

6 To the total, whereas their Chinese and from USD24bn in 2018, comprising almost a fifth (17%). French counterparts brought and of global volumes. to Market . The Netherlands Certified Sovereign Climate bond With debut Green bond issuances from Barbados, ( ) was both the largest Green bond Russia, Kenya, Panama, Greece, Ukraine, Ecuador of 2019 as well as the second largest Green bond and Saudi Arabia, the Market saw further geographic issued to date. diversification. This is particularly welcome as all the new entrants are from Emerging Markets (EM). Together with other Certified Bonds from ABN Amro, Obvion, Vesteda and De Volksbank, the Netherlands Issuer type evolution: 2014 - 2019 was the largest source of Certified issuance in 2019 at (or 20%).

7 100%. This was followed by France with a total of 80% of Certified issuance. Issuers included SNCF which continued to finance the multi-billion rail and metro 60%. expansion in Paris along with a total of from 40% others, such as Soci t du Grand Paris, Soci t . G n rale and Akiem Group. 20%. By the end of 2019, cumulative Certified issuance 0% under the Climate Bonds Standard reached 2014 2015 2016 2017 2018 2019 , marking a significant milestone for the Loan Sovereign international assurance scheme established by the Government-Backed Entity Local Government Climate Bonds Initiative in 2011.

8 Development Bank Non-Financial Corporate Financial Corporate ABS. 1 The figures for China only include issuance that are aligned with international definitions of Green . 2. 2019 non-financial corporate issuance Treasury Management Agency tapped their original issuances. doubled compared to 2018. 2019 witnessed a boost in Green Bonds from non- Energy and Buildings remain the largest financial corporates, whose issuance almost doubled Use of Proceeds sectors in 2019. from 2018 (cumulative in 2019 vs in 2018), representing 23% of the 2019 1% 1% 1%. volumes.

9 All of the top three non-financial corporates Energy 3% Buildings operate in the energy sector: Engie, MidAmerican 4% Transport Energy and Energias de Portugal SA (EDP) together 9% 31% Water issued just below USD9bn. French utility company 2019 Waste Engie ( ) has climbed up three notches from Land Use 20%. the 2018 rankings, while EDP ( ) reached Industry third place in 2019 after having entered the Green bond ICT. Market at the end of 2018. 30% Unalloc. A&R. 2019 debut issuances from new EM entrants Kenya and Barbados also came from non-financial The Energy and Buildings sectors dominated Green corporates: the former with Acorn Holdings' USD41m proceeds allocation, with both sectors having a similar deal (also listed on the London Stock Exchange), and share of the Market (approx.)

10 30%). Excluding Fannie the latter with Williams Caribbean Capital's Mae, which allocated to buildings, KfW. BBD3m( ) private placement. Both issuances tops both sectors. Noor Energy 1, MidAmerican are Certified Climate Bonds . Energy and rsted represented the top issuance in the energy sector, while the Republic of France, the Financial corporates have maintained stable growth European Investment Bank, the Dutch State over time, with 2019 reaching almost USD55bn (2018: Treasury Agency and Vasakronan were prominent ), representing 21% of the total. The top two issuers for Low Carbon Buildings.