With ample desert space and swathes of sunshine all year round, the countries of the Gulf Coorporation Council (GCC) are well placed to benefit from renewable technology advancements and lowering costs in the solar industry. Rachel Goult, Director at S&P Global Ratings, explores developments in the region in Power Energy Solutions Solar.
To read the full article, please click here.
S&P Global Ratings rated its first onshore wind project in 2003. Since then, the renewable energy sector has undergone tremendous expansion. In Latin America in particular, onshore wind power sources are playing an increasingly important role. Julyana Yokota, Director, considers the unique challenges and opportunities facing onshore wind power producers in the Latin American region.
To read the full article, please click here.
With ongoing advances in sustainability, the risk of being unable to monetise carbon assets grows by the day. A new book from Routledge, Stranded Assets and the Environment: Risk, Resilience and Opportunity, explores the ramifications of asset stranding across various sectors of the global economy.
Mike Wilkins, Head of Sustainable Finance at S&P Global Ratings, supplies chapter 8, drawing on research and real-world corporate case studies to focus on the credit implications of stranded assets.
The GCC faces high spending requirements on two fronts. Infrastructure projects require approx. US$120-150 billion between now and 2019, while refinancing corporate capital market debt also demands US$23.6 billion, due before 2019.
However, green Islamic financing fuelled corporate and infrastructure Sukuk issuance in the GCC last year, writes Michael Wilkins, Head of Sustainable Finance at S&P Global Rating. So, it appears that this nascent asset class could help the development of Sukuk issuance overall in the region.
Read the full article here on pages 44-45.
Thanks to increasing levels of debt financing for climate-aligned projects, wind-generated power has become one of the fastest-growing green industries.
Jessica Williams, Infrastructure Analyst at S&P Global Ratings, considers the undersea transmission cables that are making this progress possible by spurring distribution of the energy created.
Read the full article here.
As key providers of financing, banks have a significant role to play in the transition to a low-carbon economy. S&P Global Ratings’ recent report considers the growth of green bonds issued by banks in recent years and prospects for continued green financing to account for an increasing proportion of bank lending in the future.
The news was covered by Environmental Finance, The Asset, and Quartz.
The proposed bonds that will finance the Eólica Mesa La Paz wind farm, in Mexico, have received an S&P Global Ratings Green Evaluation of E1/91 – the highest score available. Eólica Mesa La Paz will finance the construction of a 306-megawatt (MW) onshore wind project, located in Tamaulipas, by using a new senior secured bond for $303 million with final maturity in December 2044.
Benefitting from a robust project finance legal structure and high-level commitments to reporting on carbon reduction efforts, the project received scores of Transparency (80), Governance (95) and Mitigation (92).
This news was covered by Windpower Engineering and Development, Power Finance & Risk and Renewables Now.
US$350 million senior secured notes, issued in February 2018, by BIF III Holtwood LLC, have received an S&P Global Ratings Green Evaluation score of E1/90.
The score of E1/90 reflects an excellent Mitigation score (95/100), which is supported by a focus on renewable energy generation contributing to systemic decarbonisation and that these projects are located in areas of moderate carbon intensity.
This news was covered by Responsible Investor, IJ Global and Environmental Finance.
Writing for Responsible Investor, Michael Wilkins, Head of Sustainable Finance at S&P Global Ratings, considers the changing nature of the green finance market. While it continues to be led by the green bond, new financing vehicles – such as green securitisation and green sukuk – may help address climate change, while meeting infrastructure and energy needs.
Read the article full here (note: behind a paywall or with a free trial)
S&P Global Ratings expects strengthening green bond market fundamentals to fuel about a 30% increase in self-labeled instruments globally in 2018, pushing issuance to around $200 billion for the year (2018).
This news, published in a report entitled Green Bonds Issuance Is Expected to Shoot Up Further was covered by the following in the specialist press: Edie.net, Euractiv, Better Society, Daily Sun, Business Green (1) (2) (3), AlphaQ, FTSE Global Markets, The Star, The Business Times, MSN Money, PDF Network, IIEFA, Institutional Asset Manager, Time of News, The Strait Times, Climate Action (UN), GNews, Business Net, 4Traders, and Green Biz.
Image Credit: CC Search user: Hennasabel (License).