While the first half of 2019 saw a somewhat lacklustre performance in the global green bond market, the latter stages of this year are bringing change – particularly for Latin America.
Writing for the World Bank’s blog, Bruno Bastit, Associate Director, Sustainable Finance, S&P Global Ratings, notes that following the issuance of two large green transactions totalling US$1.3 billion in the first quarter of this year, the region is seeing increased interest in financing projects and infrastructure via green-labelled debt instruments.
However, for green bonds to really take hold in Latin America, uptake needs to extend beyond the handful of countries, issuers and sectors spearheading issuances today, says Bastit.
The article was published on World Bank’s blog here, as well as its Spanish language blog, Voces, here.
In an article for The Energy Industry Times, S&P Global Ratings’ Julyana Yokota, senior director and sector lead, Infrastructure and Utilities, Latin America, argues that solid, transparent and predictable regulatory structures are keeping the region’s utilities on track.
Though policy uncertainty remains for some countries, many are mandating minimum renewable energy targets, argues Yokota. And, in turn, autonomous and stable regulatory structures are as vital as ever for the region’s utilities to continue their steady operating performance.
Please click here for the full article.
The presence of new administrations across Latin America has mounted concerns over whether wholesale regulatory and policy reform could fundamentally alter the pace of the region’s energy transition.
But Julyana Yokota, senior director and sector lead, Infrastructure and Utilities, Latin America, S&P Global Ratings, recently wrote for World of Renewables, to highlight that the region’s robust regulatory frameworks will, in fact, likely support the region’s transition to renewable energy.
“Frameworks for the energy sector are becoming more robust, with energy utilities operating under increasingly credit-supportive regulatory frameworks,” Yokota argues. “Coupled with growing political support, we may see promising conditions for the energy transition to take hold.”
To read the full article, please click here.
Southeast Asia is not only thriving as a manufacturing centre, it is likely to benefit hugely from China-U.S. trade tensions. In an article for Asia Outlook, Arnon Goldstein, Regional Head of Relationship Management APAC, and Joon Kim, Global Head of Trade Finance Product and Portfolio Management, BNY Mellon Treasury Services discuss how its banking sector will need to keep pace – and may need external help to leverage the potential opportunities.
To read the full article, please click here
Writing for Renewables Investor, Timucin Engin, Senior Director, GCC Region at S&P Global Ratings, considers the growing support for sustainable finance across the Gulf Cooperation Council (GCC).
While the green bond market in the GCC is still in its infancy, Engin argues that the region’s huge investment in renewables – which serves both to alleviate the pressures of falling oil prices and further promote sustainable practices among GCC members – could spur transactions funded via green finance.
To read the article, please click here.
In an exclusive interview with T&D India, Abhishek Dangra, Infrastructure Sector Lead, SSEA, S&P Global Ratings, considers the outlook for India’s green finance market over the coming years.
“India has pledged to have 40 per cent of installed generation capacity by 2030 to come from renewables”, explains Dangra. “As such, green financing options have begun to pique interest from the Indian market.”
This rings true of Parampujya Solar Energy, a subsidiary of Adani Green Energy Ltd., who recently proposed US$500 million in green bonds to finance and refinance its solar power plants and related transmission structure. The proposed issuance received an S&P Global Ratings’ Green Evaluation score of E1/90, the highest on a scale of E1-E4. This evaluation also marks S&P Global Ratings’ first Green Evaluation in India.
For more information on S&P Global Ratings’ Green Evaluation, please click here. To read the full interview in T&D India, please click here (p.20).
Despite global trade facing a multitude of challenges, including U.S.-China trade tensions and increasing protectionist policies, Asian trade remains robust. Writing for The Asian Banker, BNY Mellon’s Arnon Goldstein and Joon Kim discuss the resilience of Asian trade and Asia’s position as not only an anchor, but an engine, for global trade.
According to Goldstein and Kim, as Asia’s import and export markets strengthen and countries such as Vietnam pick up the baton from China as key low-end manufacturers, while China moves to a more consumer-driven economy, Asian trade is well positioned to continue flourishing.
To read the full article, please click here.
Faced with growing compliance pressures, banks are beginning to take serious note of the digital solutions becoming available to help navigate the heightened regulatory environment. In an article for Semana Economica, Mariel Garcia, Country Executive, Peru, LatAm Treasury Services, BNY Mellon, discusses how regtech has the potential to transform existing processes; the steps that the Latin American financial sector could take to best harness its capabilities; and how Peru can get involved.
To read the article – written in Spanish – please click here (please note, subscription to Semana Economica required)
In a commentary for Brink News, Julyana Yokota, Director of Infrastructure Ratings at S&P Global Ratings, highlights the geopolitical and regulatory risks that are driving a shift in investor sentiment towards Latin American infrastructure.
Yakota considers Brazil, Mexico and Argentina individually, alongside the broader regional landscape, stating that “credit conditions have significantly improved…particularly with regard to utilities’ regulatory stability and transparency.”
The full commentary can be found here.
Growth in regulation impacting lending, along with rapid globalization have put pressure on capital providers’ due diligence capabilities. Pair this with the inherent complexity of trade and project finance transactions and it is clear why many capital providers are now choosing to outsource their due diligence. Matt Reed, Associate Director at RedRidge Diligence Services, explains the trends in the sector.
Read the full article here