Hi. I have found this interesting example of Climate Transition Bond Fund from abrdn.
Original Message:
Sent: 03-07-2024 13:48
From: Aya Pariy
Subject: Infographics: Green bonds tokenised
and here's the link for Green Bonds Webinar recording (with Bloomberg)!
Happy viewing!
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Aya Pariy
Original Message:
Sent: 27-06-2024 15:48
From: Aya Pariy
Subject: Infographics: Green bonds tokenised
Happy to share a brief overivew of what we've learned on green bonds during our webinar yesterday with Bloomberg's Jonathan Gardiner and our community member Christopher Wigley.
#sustainabledebt is now mainstream and is no longer a small niche market. It has surpassed USD 8 trillion mark. It has come a long way since the modest beginnings.
Jonathan shared that we see a tremendous increase in #socialbonds. Sovereign issuances dominate the market of #greenbonds now, other issuers include utility and energy companies and other industrials.
There has been no shortage of green-washing scrutiny this year. One of the challenges of this market is the absense of globally recognised regulations on how these securities are labelled. There are voluntary sets of guidance that are adopted as best practices including The Green Bond Principles and EU Green Bond Standard.
Bloomberg now has more than 70 green bonds indices, where green, social and #sustainabilitylinked bonds data sets are applied. For companies to be included in these indices, all green bond principlease have to be mandatory for the company.
Our host Christopher Wigley made interesting remarks. There are some asset managers who are managing a green bond fund and they might want to use green bond index or a blended mix. Some asset managers want to outperform the mainstream index. There are also asset owners who might not have a portfolio of green bonds, but they may be investing in green bonds as part of their diversified portfolio. There are also equity portfolio managers investing in green bonds for the actual impact.
There were a lot of questions discussed further. On who the issuers are, what are their drivers to use green bonds, how the funds are allocated, typical duration of greenbonds and main risks (liquidity, balance sheet etc) and #transitionbonds.
I will share Jonathan's slides and a recording to this webinar in this thread later.
I
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Aya Pariy
Original Message:
Sent: 20-06-2024 11:48
From: Aya Pariy
Subject: Infographics: Green bonds tokenised
Hello Community!
Don't forget there's still time for you to reserve your spot in community webinar on green bonds with Jonathan Gardiner from Bloomberg. Our community member, green bonds expert, Christopher Wigley, is hosting it. June 26, 1 pm UK time. Here's the link
I found these interesting articles about green bonds and thought I'd share.
Are you getting the "green label" for free?
It sounds like a good news for sustainability. Sustainable debt issuance has hit a record level this year as investors pile into green bonds and other debt tracking similar themes while also locking in an attractive yield (according to FT). Issuance of green bonds, used by countries or companies to pay for environmental projects, jumped 43% on the previous quarter to USD 195.9 bn. CBI predicts that green bonds are on track to hit a total of USD 1 tn of issuance this year.
Demand for sustainable debt has been boosted by high interest rates, but also by what some fund managers call the erosion of the so called "greenium, a discount in the cost of borrowing that issuers of green bonds can enjoy. In many cases investors can put money into sustainable debt without sacrificing much, if anything, in terms of yield. Read more here
More on green bonds:
§ Definitions and regulations of green bonds. FT
§ Green bonds market in the US. Read more in the FT article here
§ Have green bonds staged a comeback? LSEG Sustainable growth analyses the market and the impressive resurgence of the green bonds.
If you are investing in green bonds, share your lessons learned here.
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Aya Pariy
Original Message:
Sent: 05-09-2023 17:21
From: Adriana Reali Saler
Subject: Infographics: Green bonds tokenised
Dear Aya,
I come from the structuring side, and believe that tokenization could be a very adequate operational setup for the product. All traditional assets can become a digital asset, and particularly those debt capital market assets that have a broader circulation (not bilateral/private placements) can benefit from the blockchain technology due to the reduction of frictions and thus improved transparency and liquidity across the whole network that you mentioned. Going forward, it can further automatize the issuing process and thus reduce fees and costs to the issuing entity.
The main question to me is if the investors that are sustainability-dedicated would be ready to buy those tokenized assets. I imagine that it would take some time to have the adequate operational/risk infrastructure to hold those assets into their portfolio, but would be keen to learn more if this transition is on sight/ongoing for them.
I also ask myself if composites of those tokenized assets, in the form of ETFs for example, could be an attractive product to the broader investor base, diversifying company-specific risks but retaining the exposure to an impact investment theme that the investor supports or commits itself to.
Anybody keen to chat about those reflections please feel free to contact me directly!
Kind regards,
Adriana Reali
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Adriana Reali Saler
Structured Finance Manager
Original Message:
Sent: 05-09-2023 11:20
From: Aya Pariy
Subject: Infographics: Green bonds tokenised
very insightful, thanks so much Chris!
I am curious to hear from other members too on this - share if you have participated in green bonds issuance and whether you see prospects for tokenisation in UK / Europe?
P.S. We are preparing a video content on one such projects - will share it on the platform soon
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Aya Pariy
Original Message:
Sent: 05-09-2023 11:13
From: Christopher Wigley
Subject: Infographics: Green bonds tokenised
Dear Aya,
I hope you are well
Thank you for your message
From my perspective:
Of course, four elements are mandatory to be a Green Bond:
- Disclosure of the use of proceeds
- 100% of the money must go to Green projects
- There must be a Green Bond framework released by the issuer or roadshow document
- There must be regular reporting increasingly impact reporting
(Green Bond Principles)
Green projects tend to be long term
So Green Bonds tend to have longer duration than conventional bonds
Green Bonds tend to have lower volatility than conventional bonds with a the same duration
- as they tend to be held by long term responsible investors - who tend not to react in a knee jerk fashion to short term news
There is still credit risk however
Consequently, for retail investors, holding Green Bonds in a diversified portfolio or fund is considered prudent
Although liquidity is important - for funds etc - Green Bonds were never intended to be short term traded instruments
Just as the Green Bond has a long term green commitment to the linked green projects, so the Green Bond investors normally have a long term commitment to the same green projects
Hope this helps
Best regards
Christopher Wigley
Sent from my iPhone
Original Message:
Sent: 9/5/2023 5:18:00 AM
From: Aya Pariy
Subject: Infographics: Green bonds tokenised
Infographics: 6 steps to tokenising green bonds
Blockchain green bonds tokenization is the use of blockchain technology to tokenize green bonds. Green bonds are fixed-income securities issued to finance
environmentally sustainable projects. Tokenization is the process of converting an asset, such as a bond, into a digital token and then be traded on
a blockchain network. By using blockchain technology, green bonds can be tokenized and issued as digital tokens, allowing for easier tracking of ownership and
providing greater liquidity. The use of blockchain technology can also enhance transparency, reduce costs, and increase efficiency in the issuance and
Tokenization can also help increase the accessibility of green bonds to a wider range of investors. For example, fractional ownership
of a green bond can be made possible, allowing smaller investors to participate in the financing of sustainable projects. Overall, the use of blockchain
technology in green bonds can help promote sustainable investing while also providing a more efficient and accessible
investment option for investors.
Do you have experience in blockchain technology and tokenising green bonds? There seems to be a lot of great activity on this in Asia.
Do you think UK and Europe are missing out?
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Aya Pariy
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