S&P Global Ratings has awarded a Green Evaluation score of E2/68 to Minera Los Pelambres’ proposed US$875 million loan – the second highest score available on the Green Evaluation scale of E1-E4 – making Los Pelambres the first mining company globally to receive a Green Evaluation. The loan facility will fund part of the company’s US$1.3 billion copper mine expansion project, based in Chile.
Roughly US$530 million of the US$875 million loan is labelled as a green financing since proceeds will be deployed at the new water desalination plant and the associated pipeline. The plant will bring seawater to the plant in Choapa Valley, instead of competing for fresh water in neighboring municipalities, where water resources are scarce and expensive.
Following outreach from Moorgate, TXF News covered the Green Evaluation.
Bazalgette Finance has issued £175 million of index-linked green bonds to fund its Thames Tideway Tunnel (TTT) in London. S&P The financing has received an S&P Global Ratings’ Green Evaluation score of E1/95.
Noemie de la Gorce, analyst in S&P Global Ratings’ sustainable finance team said that the S&P Global Ratings’ high green evaluation score includes the “positive environmental impact from the increase of available fresh water in the tidal Thames from wastewater treatment, as well as carbon savings.”
This news was covered in Waterbriefing, Utility Week, IJ Global, Better Society, Environmental Finance (please note the paywall/login for the last three websites).
ACS Servicios Comunicaciones y Energía S.L.’s (ACS SCE) €750 million worth of green notes has received an S&P Global Ratings’ Green Evaluation score of E1/83.
This high score is supported by proceeds allocated to renewable energy and water projects in countries with medium carbon intensity grids and medium to high water stress – and is coupled with our hierarchy adjustment that reflects the role that these technologies play in the transition to a low-carbon economy.
The news was covered by Global Water Intelligence and WaterBriefing Global
Modern Land (China) Co. Ltd.’s US$350 million of green bonds – to finance environmentally certified buildings in China – have received an S&P Global Ratings Green Evaluation score of E1/84.
The high Mitigation score of 92/100 is because of the high level of expected avoided carbon emissions compared with the baseline scenario – due to the high carbon intensity of the coal-dominated grid.
To see the full coverage in Responsible Investor, please click here
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.
On 17 April 2018, S&P Global Ratings marked the launch of its Sustainable Finance team. At a reception in central London, the team, which includes members from North America, hosted specialist and tier one agencies.
The Sustainable Finance Team is a cross-practice, dedicated team of S&P Global Ratings analysts who cover environmental, social and governance (ESG) analytics and research, insight into sustainable infrastructure trends worldwide, and the S&P Global Ratings Green Evaluation – an asset-level environmental credential, launched in early 2017.
Moorgate worked with the communications team at S&P Global in arranging the event, including invitation attendance, content for distribution, and all venue logistics.
To see the new S&P Global Ratings Sustainable Finance website, please click here.
In January, S&P Global Ratings expanded its Sustainable Finance team with a new appointment. Corinne Bendersky transfers to London from San Francisco, where she spent the last two and half years as an Associate in the Infrastructure & Renewables Team, specialising in credit ratings for renewable energy and public private partnership projects.
In her new role, Bendersky will be working on environmental and climate risk research and the “Green Evaluation” – S&P Global Ratings’ tool for assessing the green credentials of financings. She will also contribute to the ongoing work on how environmental, social and governance (ESG) factors are incorporated into credit ratings.
The news was covered by Environmental Finance here.
Ence Energía S.L.U, the renewable energy division of prominent Spanish biomass energy producer Ence Energía y Celulosa S.A., is seeking to restructure its debt through a €220 million facility to further its biomass power generation business.
The green loan received an S&P Global Ratings Green Evaluation overall score of E1/79, reflecting that biomass’ potential to play a large role in decarbonisation in regions such as Europe.
The Green Evaluation was covered by Project Finance International (PFI), IPP Journal and Better Society.
Image Credit: CC Search User Savannah River Site (License).
Bazalgette Tunnel Ltd issued a £10 billion, multicurrency bond program in June 2016. The proceeds will be used to finance the design, construction, commission and maintenance of the Thames Tideway Tunnel (TTT) and have received an S&P Global Ratings Green Evaluation score of E1/95.
The TTT project aims to ensure the UK’s compliance with the 1991 EU Urban Waste Water Treatment Directive by mitigating combined sewage overflows, which – exacerbated by London’s expanding population and changing weather patterns – have led to excessive levels of sewage discharge into the river Thames.
The score of E1/95 positions the TTT program at the top end of the Green Evaluation scale and reflects the excellent Governance (93) and Mitigation (97) scores – underlining the project’s commitment to alleviate water stress by increasing the availability of fresh water and reducing wastewater in the Thames.
Following distribution by Moorgate, news of the Green Evaluation was covered by Water Briefing, Environmental Finance, IJ Global, and Partnerships Bulletin.
Speaking to Environmental Finance, S&P Global Ratings’ Michael Wilkins, Managing Director, Environmental & Climate Risk Research, appeals for greater attention to effective disclosure of green bond issuances to ensure that their environmental objectives are met.
A report by S&P Global Ratings has found that a lack of transparency and governance measures is significantly affecting the scores of self-labelled green bond issuances under S&P Global Ratings’ Green Evaluation. The Green Evaluation scores green bonds issued to finance carbon mitigation projects according to three criteria – mitigation, governance, and transparency – before aggregating them into an overall score, on a scale of E1 (highest) to E4 (lowest). After assessing 282 green bond issuances between January 2012 and July 2017, S&P Global Ratings found that the projects they evaluated tended to fall down at the point of effective disclosure through transparency and governance measures. This lack of effective disclosure, Michael notes, is even more apparent in the wider green bond market. Improving transparency and governance is crucial to ensuring that green bonds live up to the reason for their issuance – that is, making a positive contribution towards decarbonisation.
To read the full article, please click here.