Christopher Flensborg’s Post

This is GREAT news! Danske Bank will divest from 1,730 companies involved in oil, gas and coal expansion. There's still work to do: 170 fossil fuel companies will remain as part of its investments. They had already announced last year the end to all NEW investments in oil and gas exploration and production. It’s quite a turn-around for Denmark’s largest bank. Research by Banking On Climate Chaos found that between 2016-22, they’d invested $8 billion in fossil fuels. And, their new policy doesn’t just apply to their banking arm, but also to their pension fund, Danica Pension. The Nordic Centre for Sustainable Finance – who have pushed tirelessly for this to happen - estimates the divestment will total over $1bn. One of the triggers for this new policy from Danske Bank is that they discovered last year that 99.9% of its emissions stemmed from its investments. You can find out how green the money of your company is on MotherTree's free money carbon calculator ➡️ https://lnkd.in/dwusep4M

It is often said that switching to a climate friendly bank is one of the most impactful carbon reducing decisions you can make. However, it's not easy to quantify the kind of CO2 savings that will be made. What is clear, is the fact that you're sending a signal to big banks that enough is enough. A striking fact that drove Danske Bank's decision is the discovery that over 99% of their emissions came, not from their own activities, but from their investments. https://lnkd.in/eC4KR_SN

🌿 𝗧𝗲𝗻 𝗬𝗲𝗮𝗿𝘀 𝗼𝗳 𝗞𝗳𝗪 𝗚𝗿𝗲𝗲𝗻 𝗕𝗼𝗻𝗱𝘀 – A Success Story for Investors, the Market, and KfW 🌿 Exactly a decade ago, we marked a significant milestone by issuing the first ‘Green Bond – Made by KfW’ with a face value of €1.5bn and a 5-year maturity. Joint lead managers were Crédit Agricole CIB, Deutsche Bank Investment Bank, and SEB. The overwhelming investor demand and exceptional response set the stage for a remarkable success story. Since then, we have completed in total 132 transactions in 14 different currencies, ranging from a €6m equivalent MTN issuance to a €6bn benchmark-sized bond. Some of our transactions pushed forward the boundaries of the market through their innovation, execution, or size; some were even awarded, but all conveyed our passion for the green bond market and its potential for positive impact. 💚   To date, global green bond investors have entrusted us with funds totaling €77.8bn for climate-friendly projects, positioning us as the 4th largest green bond issuer worldwide. However, our motivation extends beyond size, focusing on 🆀🆄🅰🅻🅸🆃🆈, 🅻🅸🆀🆄🅸🅳🅸🆃🆈, and 🆃🆁🅰🅽🆂🅿🅰🆁🅴🅽🅲🆈.   As an active advocate, issuer, and investor in green bonds, we have played a significant role in the impressive development of the green bond market. Our dedication to aligning with reliable market standards (ICMA - International Capital Market Association Green Bond Principles), providing relevant environmental data, and fostering liquidity has been pivotal in supporting the market development.   💬 Our Head of Capital Markets, Petra Wehlert, has been involved in shaping our green bond mission from the beginning. She says, "10 years of KfW Green Bonds means almost €80bn equivalent bonds issued. This is a significant amount, actually the same size as our annual funding program this year in 2024. A relevant market has developed. We have succeeded in establishing liquid green curves, and especially in the euro market, these curves serve as a reference for new green issuances for KfW and other issuers. That’s a clear achievement for KfW, investors, and the SSA market."   👀 Looking ahead, we are committed to extending transparency about the positive environmental and social impacts in line with our current reporting for our #greenbonds to all our bond offerings. Our vision for the future includes intensifying efforts to achieve this goal.   Join us in celebrating this milestone and stay tuned for more updates by ringing the bell in our profile. 🔔 Learn more about our green bonds here 👉 https://lnkd.in/ey-iJxyV   #SustainableFinance #GreenInvesting #ESGinvesting #10YearAnniversary #DebtCapitalMarkets #CapitalMarkets #SSAmarket #FixedIncome

For almost a decade, green bonds have been our passion at KfW. 💚 This week, we closed a 'Green Bond - Made by KfW' €1bn tap which brought the outstanding volume of this green bond maturing June 2032 to a total of €5bn. The lead managers for this transaction were Barclays Corporate & Investment Bank, Commerzbank AG, and Danske Bank. Not only was this tap our twentieth green bond transaction this year, but it also brought our total green issuance volume since the start of our green bond program over € 7️⃣0️⃣ billion! 🥳 We're thrilled to announce that this achievement underlines our role as one of the largest providers of liquidity in the global green bond market. Currently, there are 12 euro lines totalling €40bn of KfW Green Bonds in sizes between €1bn and €6bn outstanding. If you're interested in learning more about our green bonds, we invite you to visit our website 👉 https://lnkd.in/ey-iJxyV #CapitalMarkets #SustainableFinance #GreenBonds #FixedIncome #DebtCapitalMarkets

Thanks to the support and demand from investors, we were able to set another anchor point on KfW's "green" EUR curve this week: With granular demand of more than EUR 24 bn, we were able to place a bond with a term of 8 years and a volume of EUR 4 bn. This new issue offers a premium of one basis point over the outstanding green bonds. It is also worth mentioning that we were able to allocate almost 70% of the bond to investors who specifically invest in the "green bonds" asset class. This contributes to investor diversification. The success of this transaction was made possible by the investors and the banks accompanying the transactions, Commerzbank, Danske, Natwest and Societe Generale. Further information on KfW's green bonds can be found on our website kfw.de.

The increasing appetite by investors for exposure to sustainable investments is evident in cases like these as the The World Bank Treasury (IBRD • IDA) raises about $3bn through this 10 year bond to support investors in sustainable projects #sustainability #sustainablefinance #worldbankgroup #bonds #capitalmarkets

We are told the problem with sustainability-linked bonds is the coupon step-ups are too small and the targets unambitious. Tightening up both of these would give SLBs juicier 'optionality' and make investors love them. We beg to differ. SLBs are not options — nor are they levers to make issuers greener. Companies and governments are not going to offer really big coupon step-ups, and they can only commit to targets they're think they're going to hit. In fact the structure is fine, and so is the way issuers are using it. The problem with SLBs is they hedge something investors are not afraid of. Read all about it in this free comment. #sustainability-linked bonds #slbs #slb #esg #sri #responsibleinvestment #climatefinance #sustainablefinance #greenbonds https://lnkd.in/eybwDM4t

#FinanceTheTransition #securitisation #TransitionFinance - Set-up of a 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗦𝗲𝗰𝘁𝗼𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗟𝗮𝗯 (PSIL) to address global challenges. - PSIL focused on figuring out a #securitisation model to accommodate an 𝗮𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗽𝗹𝗮𝗰𝗲 for large players 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁. - Products building on financial guarantees are the 𝗺𝗼𝘀𝘁 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁, 𝘄𝗲𝗹𝗹-𝗸𝗻𝗼𝘄𝗻 𝗮𝗻𝗱 𝘂𝘀𝗲𝗱 form of credit support. - Goal for the World Bank to create a much more 𝘀𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗲𝗱 𝘀𝗲𝘁 𝗼𝗳 𝗴𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 that can be used across different markets. - 𝗣𝗦𝗜𝗟 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 – besides World Bank – 15 big players: AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek and Three Cairns Group.

Private equity, fixed income, real assets….What’s the best way of investing in the climate transition? At the RIAA Conference Australia, hear from Kristy Graham, Chief Executive Officer at Australian Sustainable Finance Institute, Helena Fung, Head of Sustainable Finance and Investment, Asia Pacific at LSEG (London Stock Exchange Group), Xuan Sheng Ou Yong, Sustainable Fixed Income Lead, Asia Pacific at BNP Paribas Asset Management and Erika Leung Rodriguez, Head of Sustainable Investing APAC at KKR. These experts will discuss the advantages and challenges of the various ways to reduce emissions and invest in the transition, from private equity to index investments to fixed income.   Learn more ahead of this session by reading an article by Michelle Baltazar from FS Sustainability below 👇   #responsibleinvestment #privateequity #assets #RIAAconf2024 

To solve the problems of subjectivity, reactivity and obscurity in sovereign emerging markets, Christian DiClementi, Patrick O'Connell, CFA and Elizabeth Bakarich, CFA from AllianceBernstein have identified six measures by which a sovereign issuer may be ruled in or out of an investable universe of sustainable sovereign debt. https://lnkd.in/egueYQhQ #EmergingMarkets #SovereignDebt #Investment