Green Bond Treasurer - Climate Bonds Initiative
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2020 Green Bond Treasurer Survey This report was prepared by the Climate Bonds Initiative, with analysis support from Henley Business School. Sponsored by Luxembourg Green Exchange and Danske Bank.
Introduction
This is Climate Bonds Initiative’s (Climate change effects could therefore incur
Bonds) first Green Bond Treasurer Survey, considerable financial losses through, for Contents
in which 86 treasurers (or equivalent example, stranded assets, limited resource
role) from a variety of institutions shared availability, prices or the effects of policy 3 Summary of findings
their experiences of issuing green bonds. choices, such as carbon pricing.6
5 Results of survey: Sentiment
Respondents represent emerging and
Furthermore, the risks extend throughout the
developed markets (EM and DM)1 and 8 Issuance process
entire financial system. In a recent discussion
supranational issuers. They constitute a
paper, the Bank of England observed that 12 Exchange listing
total of 34 countries of economic risk,2 29
insurance companies and banks in particular
industries,3 and credit ratings ranging from
will have to prepare: liability risks i.e. seeking
14 Post issuance
AAA to BB+.4 Chinese issuers were not
compensation for damage caused by climate 16 Sustainability
considered in the scope of this survey and
change, in the case of the former, and
will be addressed in a separate upcoming 17 Moving the market forwards
lending decisions and the associated effects
research project.
for the latter.7 20 Conclusion
In October 2019 the first Climate Bonds
The purpose of the Climate Bonds Green 21 Appendices
Green Bond European Investor Survey
Bond Treasurer Survey is to highlight the
(the Investor Survey) was published.5 1. Methodology
benefits and challenges of issuing green
Respondents repeatedly referenced the lack
bonds with the intention of encouraging
2. Survey participants
of adequate supply of green bonds. Further,
the Investor Survey found a rough match
more issuers to come to the market. Between 23 Endnotes
May and November 2019, 143 green bond
between the most carbon-intensive sectors
issuers were invited to join the project.
and investor demand for green bonds in Chart 1 The treasury departments of the
Issuers were selected from the Climate Bonds
those sectors, but a clear shortage of green entities in the respondent sample had
Green Bond Database, ensuring proportional
bond supply. The overwhelming message collectively issued 686 green bonds at the
representation from EM/DM, country of
from investors was that more green bonds time of data collection, and accounted for
economic risk, industry, and a variety of
were needed in all sectors, particularly a total of USD7.4tn in bonds outstanding,
credit ratings. Language barriers and time
the most polluted (“brown”) ones. The including USD222bn of green bonds.8
zone restrictions made it easier to engage
European investment community has more
with some issuers compared to others. The Full methodology and a description of the
experience of, and exposure to, the climate
response rate was highest in Europe. respondent sample are provided in Appendix 1.
agenda compared to other regions. While
demand for green bonds is beginning to
spread to other territories, the number of
dedicated green bond funds outside Europe
1. Respondents encompass all regions
is so far limited.
Green bonds offer organisations the
Supranational
opportunity to prepare for the impacts of
climate change, initiate the transition to
a greener business model or fund green North America
activities by providing access to low cost
capital via well understood and labelled Middle East & Africa
products. Climate change will increasingly
impact all areas of societies and economies Latin America & the
Caribbean
globally. There is widespread consensus
that the physical risks arising from climate Europe
change are likely to cause unprecedented
disruptions to supply chains across
Asia Pacific
industries, whereas transition risks could
result in entire industries ceasing to exist. 0 10 20 30 40 50
Companies that are unprepared for climate Number of respondents
About Climate Bonds Initiative data and analysis, and administers the Climate Bonds Certification is a labelling
international Climate Bonds Standard & scheme. Rigorous scientific criteria ensure
Climate Bonds Initiative is an investor-
Certification Scheme. that it is consistent with the 2oC warming
focused not-for-profit, promoting
limit of the Paris Agreement. Certification
investment in the low-carbon economy. Climate Bonds’ Green Bond Database
requires initial and ongoing third-party
Climate Bonds undertakes advocacy and is based on alignment with the Climate
verification to ensure the assets meet the
outreach to inform and stimulate the Bonds Taxonomy, which excludes all fossil
metrics of Sector Criteria.
market, provides policy models, market fuel power.
Green Bond Treasurer Survey Climate Bonds Initiative 2Aligning Summary of findings
sustainability This survey was designed to highlight the
goals with benefits and challenges of issuing green
company bonds. The expectation was that cheaper
activity pricing would be at the core. Results,
surprisingly, suggested that pricing was
(company not the principal benefit of green bond
strategy/ issuance. Green bond pricing is the subject
corporate of abundant debate, including whether
material pricing benefits exist and if so, to
Understanding of sustainability) what degree.
projects/ assets This raises the question of whether the
possibility of cheaper pricing for issuers
could be driving the growth of the green
bond market. Any benefits other than pricing
are largely intangible, and are described as
ancillary. The results of this survey suggest
that pricing is one of the ancillary benefits,
Futureproofing of business
Reputation
and from the perspective of green bond
issuers, other impacts of issuing green bonds
exhibit greater value at present.
The results of this survey suggest that
green bonds can:
Contribute to transition, risk
Relationships management, and future
ts
proofing the business
efi
en
Most enterprises are naturally exposed
le b
to climate risks and need to adjust
their business models towards a low
ion
gib
and ultimately, zero carbon future. This
+ – exposure is determined by both the
sat
an
company’s core business and the extent
/t
rdi
Visibility Broader to which sustainability is integrated into
ing
da
the company’s strategy. The degree of
investor integration varies, and organisations are at
tan
ric
base different stages of transforming models from
-P
-S
brown to green.• While there were costs associated • By issuing a green bond, an organisation Encourage better standards to
with implementing these adjustments, is letting the world know it is open for benefit all
it appears that respondents believe green business, in much the same way
Most respondents advocated the
them to be justified. Respondents told that a taxi puts its light on. Issuers said
standardisation of definitions, taxonomies,
us that this process resulted in a more they were offered more opportunities to
and reporting to ensure the integrity of the
robust infrastructure, and the goodwill participate in green projects as a result, and
green bond label.
and positive sentiment created between several banks were motivated to launch
companies and stakeholders as a result of green lending products. See page 16 Many supported the development
these efforts led to transformative effects and implementation of the European
• 88% of respondents said they planned to
on their organisations; See page 9 Commission’s Sustainable Finance Taxonomy
issue more green bonds, while a further
(EU Taxonomy).
15% said they would reopen their current
Broaden the investor base bond. This underscores the positive • There was debate about the strictness of
and offer new engagement experience of issuing green bonds. An the definitions. Some expressed concerns
opportunities established investor base and greater that making definitions too stringent could
The dialogue with investors appears to be visibility in the market were the most discourage smaller issuers from entering
more extensive for those issuing green bonds, frequently cited advantages of repeated the market. Others mentioned that the
with senior management often participating green bond issuance. Support from a chances of ‘getting it wrong’ could be
in roadshows. Issuer profile is boosted, as new pool of investors is invaluable to amplified. See page 17
the green bond signals to the market that any treasurer, and it is unsurprising that
• Standardisation was named as both a
the organisation is incorporating green they would wish to consolidate those
factor to enhance, as well as an obstacle
considerations directly into capex planning. relationships. See page 16
that could impede growth and scale. It
• 98% of respondents said that their green • Of the green bonds in our sample, 84% was noted that taxonomies need to take
bond attracted new investors. The most are listed on at least one stock exchange. into consideration the disparity of markets,
frequently stated benefits of this were 1) Visibility was the most frequently selected such as the differences between EM and
a more diverse pool of investors, offering reason for this, followed by perception and DM; See page 10
greater flexibility to reopen or issue new integrity; See page 12
bonds 2) a stickier investor base and 3) Gains compensate for effort
greater visibility. See page 11 Strengthen internal integration
When asked whether they had any advice
• 91% of respondents said a green Respondents highlighted that green bond for other treasurers thinking of issuing green
bond facilitated more engagement issuance resulted in positive changes to bonds, time and again respondents said
with investors compared to a vanilla internal relationships. simply: ‘Do it’.
one. Investors interrogated issuers on
• The process of issuing a green bond • Most respondents (84%) said they had
topics including the use of proceeds, the
appears to be triggered by internal help from independent third parties on
framework, and post issuance reporting.
stakeholders and can galvanise the issuance process of their green bond,
This dialogue resulted in investors
momentum towards addressing climate including setting up the framework.
having a more intimate knowledge of the
risk. Respondents identified the board and See page 8
organisation. See page 9
staff (including treasurers) as the main
• 85% of respondents commissioned a
• Over two thirds (70%) of respondents drivers of the initiative. See page 5
Second Party Opinion (SPO). An SPO
said the demand for their green bond was
• Preparation of frameworks and reporting, can help highlight the integrity of a green
higher than for vanilla equivalents.
and identification of green assets, typically bond, reassuring investors of the green
See page 14
involved close collaboration among credentials of the project. See page 8
• On average, respondents said that various departments. This was repeatedly
• The costs of issuing a green bond were
approximately 50% of green bonds cited as a positive outcome. See page 6
regarded either as negligible or valid
were allocated to investors declaring
• A sustainability committee is not a due to other benefits. This is contrary
themselves as green or socially
prerequisite for green bond issuance. to the perception that green bonds carry
responsible; See page 14
However, most who issued a green bond considerably higher costs, which can be a
without one were motivated to set one up barrier to market entry. See page 9
Enhance reputation and visibility
either during or as a result of the exercise.
• For 90% of respondents, the cost of
Reputational benefits and sending a See page 5
borrowing for green bonds was either
signal to the market were ranked as the
• Most respondents said that issuing a very similar to, or lower than vanilla
top motivations for issuing green bonds,
green bond had positively impacted their equivalents. See page 11
followed by a desire to help curb climate
internal commitment to sustainability;
change. At present, the scant regulation
See page 16
around green bonds does not influence
the decision to issue. This suggests latent
potential for regulation to play a critical role
in accelerating the brown to green transition.
See page 6
Green Bond Treasurer Survey Climate Bonds Initiative 4Results of survey: Sentiment
Green bonds need not exclude 3. The Board had the greatest influence on the decision to issue a green bond
older projects
Less than 1 year From 1 to 3 years More than 3 years Average
Chart 2 Respondents were asked to select a
5
preferred age limit for projects suitable for
green bond financing. The answers largely
indicated a desire to include projects initiated 4
more than two years ago, with 58% selecting
this option. Preference for the recency of
3
the projects differed by the asset class, and
sector of the respondent. Jernhusen AB, and
Vasakronan, both Real Estate companies, issue 2
green bonds to finance loans that are utilised to
Average Score
make old buildings energy efficient.9 Buildings 1
(i.e. the asset) would only qualify for this if
they were more than two years old.10 KBC
0
opined that the age of a project does not
necessarily impact its green credentials, e.g. Investors Employees Board Syndicate Regulators
a five-year-old windmill should be eligible as
a green asset. Sub-Sovereign, Supranational, The board has the greatest Regulators were cited as the least influential
and Agency (SSA) issuers, which included influence on the decision to stakeholder group in the decision to issue a
Development Banks, also favoured a longer issue a green bond green bond to date, with an average score of
time frame. For Development Banks, just 1.82. Market forces appear to be driving
Chart 3 Respondents were invited to score a
particularly those operating in EM, it is not the green bond issuance for the time being,
list of stakeholders from 1-5 based on their
unusual for the mobilisation of proceeds to as opposed to regulation. This could be an
influence on the decision to issue a green
take up to two years once the due diligence opportunity for regulators to enact policies
bond. The board was the highest scoring
has been completed. Smaller issuers also to facilitate an increase in the scale and
of the stakeholder groups (4.01). It also
preferred this answer, possibly because they rapidity of green bond issuance.
appeared to have greater influence on those
have less choice of projects and thus want to
entering the green bond market within the
choose from a broader pool. Consensus critical in sovereign
last year (4.29) suggesting that the positive
See Appendix 1 for parameters used to profile of green bonds could have played a
green decisions
capture small, medium and large issuers, role in their motivation. Sovereign governments issue green
and the categorisation by recency of first bonds in response to different pressures.
Employees was the second highest scoring
green bond. Sovereign respondents told us that the
group (3.99), and the respondents, who were
critical stakeholders in the decision to
mainly treasurers, included themselves in
issue a sovereign green bond were the
this category. Many treasurers reflected that
“Green bonds should not they pushed for green bonds in response to
central government, particularly the
only fund new projects but environment and finance ministries, the Debt
shareholder pressure.
also sustaining projects Management Office (DMO), and investors.
that support improvement Debt Capital Markets (DCM) desks at All had to be committed to sovereign green
and capital expenditures in investment banks can exert influence by bonds for them to materialise.
relation to green assets.” introducing green bonds to treasurers. Based
on the success of similar organisations, More than three quarters of
Alec Cheng, Treasurer, Ontario Power
they can and do approach clients with the respondents had a sustainability
Generation
suggestion of issuing a green bond. committee, which played a key
role in the decision to issue a
green bond
2. Financial Corporates and SSA favoured the inclusion of older projects
Chart 4 A sustainability committee (SC) can
Sovereign provide a pivotal platform to catalyse internal
support for a green bond by lending visibility
SSA and influence to the project. Just over three
quarters (78%) of respondents had a SC in
Non-Financial Corporate place. The proportion increased to 84% for
those with a longer history of issuing green
Financial Corporate
bonds, perhaps as a result of experience,
and to 82% for larger issuers, possibly due
0 20 40 60 80 100
to more resources, and greater scrutiny. It
%
has become the norm for large organisations
Only new projects All projects
to report on sustainability and overseeing
New projects or those completed within such reporting would fall under the remit
the preceding two years (ICMA’s view) of a SC. Among the 22% of those who
Green Bond Treasurer Survey Climate Bonds Initiative 54. Most respondents had a Sustainability Committee regardless of on the decision often did so because the
experience SC had been founded after the framework
had been developed, and tended to be early
Yes No 78% Average response movers, such as Municipality Finance, and
Nederlandse Waterschapsbank (NWB)
% More than 3 years which issued its first green bond in 2014.
Société Générale was one of these early
% From 1 to 3 years movers. Its more recently established
SC has thus had limited contribution on
% Less than 1 year prior issuance but is likely to grow as the
committee becomes more established.
0 20 40 60 80 100
For others, including Renewi, the SC was
%
created in concomitance with the issuance
of the green bond – in such cases often
5. Sustainability Committees tended to collaborate with other also titled a ‘Green Bond Committee’ – and
stakeholders in the decision to issue a green bond
drove the initiative. This suggests that green
bonds can make a critical contribution to
% Less than 1 year % From 1 to 3 years % More than 3 years
an organisation focused on sustainability
40 by providing credibility to such initiatives.
Even when organisations began the process
30 of issuing a green bond without an SC, the
experience of doing so often provided the
20 motivation to set one up.
10 Reputational benefits and
market signal were the top
0 motivations for going green
%
Zero Moderate Collaborated Drove the Chart 6 Respondents were invited to assign
influence with other initiative
stakeholders a score of between one and five to a list of
considerations according to what extent
replied they did not have an SC, equivalent franchise was not part of their remit. A each one contributed to the decision to issue a
bodies having a similar function but different quarter said that the SC had zero influence green bond.
name were nominated multiple times. For on their decision to issue a green bond.
Reputational benefits and market signal
example, Mexico’s FEFA (part of FIRA) has However, most respondents expressed that
(4.37 and 4.20 respectively) received the
a Sustainability Working Group, which was the SC played a key role in the decision-
top average scores, followed by a desire to
responsible for driving the initiative to issue making around green bonds, mainly in the
curb climate change (3.8). A green liability
a green bond. Chart 5 form of collaboration with other stakeholders
franchise can be an effective tool to reinforce
or by driving the initiative.
Among those respondents that did have all three of these messages.
an SC, a minority said that the green bond Those that said the SC had zero influence
A desire to increase the stock price ranked
6. Reputational Benefits and Market Signal were the main reasons for issuing a green bond
Less than 1 year From 1 to 3 years More than 3 years Average Weighted average by outstanding
5
4
3
2
Average score
1
0
Reputation- Changing Cheaper Investor Market Public Financial To curb Response To increase The oper-
al benefits business pricing pressure signal policy / flexibility climate to share- the stock ation was
model regulation change holder ex- price successful
pectations for peers
Green Bond Treasurer Survey Climate Bonds Initiative 6the lowest (1.44), also receiving the highest 7. Market not being sufficiently evolved was the most popular reason
number of non-responses, since equity is for not having previously issued a green bond regardless of recency
not part of the capital structure of many
bond issuers. Public policy and regulation Less than 1 year From 1 to 3 years More than 3 years Average
were rated the second lowest (2.17) again
emphasising the potential for regulators and 5
policymakers to support the growth of the
green bond market. 4
When looking at the weighted average
of the scores, curbing climate change 3
and market signal seemed to be stronger
drivers to consider green bonds for larger 2
issuers, whereas cheaper pricing and
Average score
investor pressure appeared to be less of a
consideration for them. More is at stake for 1
larger issuers: controversy would be relatively
more expensive, and therefore the market 0
signal is likely to be a more important driver.
Awareness Lack of Lack of buy Market not Investor Balance
For those that issued a first green bond less suitable in from sufficiently appetite sheet
projects stakehold- evolved limitations
than a year ago, changing business model ers
was a stronger driver for issuing green bonds
(3.09) than for respondents that had been Market evolution a factor by several respondents. Furthermore, green
active in the green bond market for at least for issuers loans may not have been marked as such
three years (1.88). This is possibly because historically. The implementation of a green
Respondents were asked to score a range of
those with more extensive experience of tagging system (see box left) can result
options between one and five to explain why
issuing green bonds already have their in a consistent and clear scoring system
they had not previously issued green bonds.
transition underway. for all loans, which can in turn be used to
Markets not being sufficiently evolved
identify projects suitable for green bond
(3.79) and awareness (3.22) were cited as
financing. More urgently, all organisations
the main reasons. For larger issuers, these
Green Tagging refers to a systematic should be able to assess the quality of their
matters were slightly more influential than
process whereby financial institutions liabilities from a climate risk management
for smaller ones.
– typically banks – identify the perspective. In this way, the process of
green attributes of their loans and Those that had issued their first green bond issuing green bonds can contribute to better
underlying assets as a tool for scaling three or more years ago assigned an average risk management and transparency.
up sustainable financing. If done score of 4.46 to the lack of market evolution.
In EM it is the expertise rather than the
successfully, the process enables KfW issued its first green bond in 2014 and
technology that can present challenges. The
smoother access to green bond markets explained that there was scant awareness
legacy software and fragmented systems
by creating a continual pipeline of of green bonds at the time, an argument
are not really an issue, but the knowledge
often relatively small assets that can be supported by other early adopters. IFC
and experience needed to identify and track
packaged into larger debt instruments elaborated that prior to its first green bond
suitable assets is lacking.
that the capital markets will accept. in 2010, investor appetite for the product
was extremely niche, and limited to private Several respondents remarked that they had
Additionally, it can enable banks to
placement offerings in very small sizes. postponed issuing a first green bond because
improve the performance tracking
Those issuing for the first time within 12 they had expected the gains to be minimal
of their green loan portfolio, which
months of responding to the survey, assigned compared to the costs and time required
in turn can contribute to increased
an average score of 3.36 to this option. to complete the process. Such ‘costs’
transparency of climate risks and
The lack of suitable projects seemed to encompassed commitments around post-
portfolio resilience. These capabilities
mainly be a concern for issuers that had issuance disclosure and additional scrutiny
are especially important as disclosure
brought a first green bond to market in the by investors. However, these fears were
requirements for investors are expected
year prior to the survey (average score 2.83 negated once the green bond materialised,
to become more stringent along with
compared to 1.5 for those that issued at least and they realised the outcomes were worth
the recommendations of the Taskforce
three years ago). the effort.
on Climate-related Financial Disclosures
(TCFD) and the European Commission’s Related to a lack of suitable projects, Deutsche Hypothekenbank brought its
regulatory proposal on Sustainable several retail banks highlighted difficulties first green (covered) bond to the market in
Finance Disclosures. around identifying green assets internally. 2017. It acknowledged that it is difficult for
Mergers and acquisition (M&A) activity can smaller issuers to create a blueprint and
result in multiple legacy IT systems within send a signal in a growing market, because
one organisation making it challenging to of the resources required to do so. It is thus
search for appropriate assets for inclusion helpful if larger issuers create a precedent for
in green bonds, an issue that was set forth smaller ones to follow.
Green Bond Treasurer Survey Climate Bonds Initiative 7Issuance Process
8. More recent first time green bond issuers are able to get the deal importance of an SPO and obtaining the Climate
done in less time Bonds Certification in adding credibility and
transparency to the project.12
Less than 6 months 6 months to a year 1 year + Smaller issuers were more likely (36%) to
rely on consultants. Half of this category
was EM, where the consultant community
% More than 3 years
appears to be very active and able to assist
% From 1 to 3 years in the process of market discovery and
demonstration issues.
% Less than 1 year
Most issuers get an SPO
0% 20 40 60 80 100 Chart 10 The Investor Survey emphasised
the importance of “green integrity”. Most
(79%) investors said they would not buy a
It usually takes less than a year DCM desks and SPO providers green bond if the proceeds were not clearly
to plan and issue a green bond can help with frameworks
allocated to green projects.
Chart 8 The vast majority of respondents Chart 9 Respondents were asked to name the
(88%) said that the process of issuing a first parties who had guided them on the green 10. Sustainalytics was the most
green bond required less than a year once bond process and were able to select multiple frequently named SPO provider
the decision had been made. Nearly half answers. Sixteen percent said that they
Oekom 10% Carbon Trust 1%
(47%) said that the exercise took six months had received no external guidance, having
DNV 4% Sitawi 1%
or less.11 internally managed the issuance of their green
bonds. Larger issuers (21%), and issuers that
Those that issued a first green bond more than None
have been active in the market for longer
three years ago needed slightly longer for the 13%
(36%), were more likely to manage a green
process, as indicated by the lower proportion
bond issuance without external assistance.
of responses for ‘less than six months’ (25%). CICERO
In the case of pioneering issuers, this was Viego Eiris
This emphasises the importance of precedent 15%
possibly because there was no infrastructure 9%
for the growth of the market, with standards
community to help and they were navigating
and norms being the expected result of
largely unchartered territory.
market development. The development of
Sustainalytics
well-established practices around key parts An SPO is an assessment of an issuer’s green
33%
of the green bond concept, for example bond framework, analysing the “greenness”
through the Green Bond Principles (including of eligible projects/assets. It also establishes
the green bond framework, management of whether the framework is aligned with the Over four fifths (85%) of respondents to
proceeds and post-issuance transparency), green bond principles. Most respondents (57%) this survey commissioned an SPO for their
has likely benefitted recent issuers. Further, relied on SPO providers and DCM desks (57%), first green bond, and a total of seven SPO
sovereigns and other high-profile issuers with irrespective of recency of issuance. Some told providers were named. Sustainalytics was the
the capacity to sell green bonds at scale can us that the DCM desks’ experience of setting most frequently chosen external reviewer,
play a role in this process with demonstration up frameworks and selecting assets had been followed by CICERO, ISS-Oekom and Vigeo
issuance going forward, particularly in less invaluable in guiding them through the process Eiris, respectively. Among issuers that had
developed EM. of issuing a green bond. Others highlighted the recently entered the green bond market,
Sustainalytics was the most popular external
reviewer, while larger issuers and those that
9. SPO Providers and DCM desks provided the most help with green
have been in the green bond market the
bond frameworks longest relied more heavily on CICERO. This
Less than 1 year From 1 to 3 years More than 3 years Average % is likely related to many of the first movers
coming from the Nordic region, where
6
CICERO has a well-established franchise.
5 Several mentioned the disparities in the
methodologies of different SPO providers.
4
3 “An issue for the current
market is that there is limited
2 regulation for external reviews
Average score
- the next step would be to
1
aggregate and standardise
0
how SPO providers operate”.
Internally Develop- CBI Consultant SPO Stock DCM Other Gerard Kits, Manager Treasury, TenneT
managed ment Bank provider exchange Desk
Green Bond Treasurer Survey Climate Bonds Initiative 8Issuers perceive the extra costs Vasakronan, among others, highlighted
to be valid for reasons other the learning opportunity arising from “Conversations about vanilla
than cheaper pricing stakeholder education internally. bonds tend to revolve around
Chart 11 Most respondents (62%) perceived Cheaper pricing does not seem to be the
spreads and liquidity, but with
green bonds, the discussions
the additional costs, such as those of primary motivation to issue green bonds.
are about the transformation
commissioning an SPO, extra legal costs, and Several respondents asserted that when
of the business”.
post issuance reporting, as valid because cheaper pricing was evident, it had been
of reasons other than pricing, while 41% driven by supply demand imbalances which Tom Meuwisson, Treasury Manager,
described the costs as negligible. Only 4% would likely evaporate as supply increased. NWB
of respondents said the issuance costs were
Additional issuance costs are frequently
justified because of cheaper funding. These
cited as a barrier to issuing a green bond.
perceptions do not vary considerably by
The responses we received to this question
issuer size or the duration of activity in the “The in-depth dialogue
indicate that our sample does not believe
green bond market.13 with investors more than
that to be the case. Even the few that
Time and effort were regarded as being lamented the costs added that they were
compensates for the extra
issuance costs”.
the main costs rather than the fees more than compensated for by gains other
linked to direct costs such as SPOs, than cheaper pricing, which was viewed as Gerard Kits, Manager Treasury, TenneT
respondents highlighted a range of “the icing on the cake”.
benefits to compensate for this. Deutsche
Hypothekenbank was one of several who
said that through their green bond, they
Almost all respondents agreed
gained access to a wider investor base
“Investors were particularly that green bonds involve deeper
keen to engage with a investor engagement
outside the traditional domestic territory.
corporate green bond issuer
Chart 12 Almost all respondents (91%)
due to the lack of corporate
perceived that green bonds involved more
11. Most respondents said extra supply”.
engagement with investors compared to
issuance costs were valid
Pasi Kyckling, Group Treasurer, Stora vanilla bonds, and this seems independent of
Enso investor size and green bond experience.
Valid because
cheaper funding Some told us that they did a more
expected 4% extensive roadshow for a first green
bond, and the dialogue resulted in greater
“Even without cheaper understanding of investor perceptions and
funding, the green bond expectations around the core features of
brought us huge profile green bonds, such as transparency and
benefits and engagement in disclosure. Generally, green bonds seem to
Negligible Valid finance”. involve a deepening of contact with clients
38% because Sakorn Suriyabhivadh, Head of project and investors.
of other finance and M&A, B Grimm Group
benefits
58% 12. Green bonds involve more
engagement with investors
“The green bond provided us
according to 90% of respondents
with three clear advantages:
1. Demonstrating our
commitment to sustainability Same 5%
“The green bond label was a to investors No 5%
stamp of approval for us”. 2. Alignment with investors to
push the agenda for climate
Sheila Nyachieo-Ochieng, Green
Ambassador, Acorn Management
action
Services Ltd. 3. Avoiding the negative
stigma of not being involved
in green bonds which, while
“The extra financial costs of not currently a problem, will
issuing a green bond were materialise in due course “.
negligible. It is the effort, not Yes
Giorgio Erasmi, Head of Funding,
the cost which is the barrier 90%
UBI Banca
to entry”.
Kee Chan Sin, Treasurer, Verizon
Green Bond Treasurer Survey Climate Bonds Initiative 913. Investors wanted more information on a variety of green bond Investors wanted more
features information on use of proceeds
and post issuance transparency
Post issuance Chart 13 Most respondents (57%) reported
transparency
that investors wanted more information on
the classification of the use of proceeds,
Classification of including details of how the proceeds
use of proceeds
would be segregated from other funds, as
highlighted by Telefonica, among others,
SPO in their interview. This was followed by
questions around post issuance transparency
(48%) and the green bond framework, i.e.
eligible asset and project categories (47%).
Framework
Classification of the use of proceeds and
post issuance transparency were relatively
Other more important issues for those investing in
the green bonds of large issuers. Meanwhile,
post issuance transparency weighed less
0 10 20 30 40 50 60 70 80
heavily for those investing in the bonds of
Number of respondents
respondents that have been active in the
Yes No market for more than three years.
This is consistent with increased investor
sophistication manifesting as a preference
What is impact reporting? impact reporting levels and metrics. Most for more transparency, particularly impact
of the frameworks referenced above reporting (see box). The Investor Survey
Impact reporting aims to provide insights
recommended that issuers report on the found that 85% of investors would either
into the environmental effects of green
impact of financing within one year of sell or be inclined to sell a green bond if post
bond financing. The objective is to
issuing the bond. Nearly 80% of bonds issuance reporting was poor.
measure changes in the performance of
were found to have some form of impact
an asset, project or portfolio of projects Sovereign issuers responding to this survey
reporting in place.
with respect to a set of relevant indicators. mentioned they were scrutinised very
In recent years, several market actors The rate of disclosure has grown at thoroughly with regards to the government’s
have formed collaborations to create an average rate of 139% since 2010 green strategy. This reflects the relevance of
frameworks for reporting on impact in when the first currently outstanding such issuance and can also be seen in other
projects and portfolios spanning a variety bonds in the analysed sample came to participants’ responses to later questions:
of use of proceeds sectors. market. However, the issue of lack of three respondents explicitly stated that
harmonization prevails: the research they saw sovereign green bond issuance as
The earliest of these was initiated
uncovered more than 50 metrics in the a crucial factor that would enhance growth
by a group of International Financial
reporting for each of the top three use of and scale of the green bond market.
Institutions (IFIs) in 2015: The
proceeds categories (Energy, Buildings
Harmonized Framework for Impact A sovereign green bond is the ultimate
and Transport).
Reporting. The International Capital endorsement for a transition to the low
Market Association (ICMA) has since In addition to the frameworks listed carbon economy.
joined the effort and established a broader above, there are efforts underway
Impact Reporting Working Group. The from the European Commission to
Group has produced reporting guidance help bring consistency and clarity to “The French treasury is
for a total of six sectors, the latest addition sustainable finance and the green bond always engaged with
being Green Buildings. Another well- market specifically. This includes the investors, but for the green
known example comes from the Nordic EU Taxonomy, which sets out technical OAT the dialogue was
region, where a group of public sector screening criteria for sustainable refreshed to include a broader
issuers came together in 2017 to produce economic activities and investments, range of topics”.
the Position Paper on Green Bonds Impact along with the proposed European Green
Alexandre Vincent, Green Bond
Reporting. The Paper underwent an Bond Standard that recommends a
Manager, French Treasury
update in 2020.14 uniform process for issuing and reporting
on green bonds. We elaborate on both
CBI conducted research on post-issuance
on page 19. Considering this and other
reporting in the green bond market. The
developments, Climate Bonds is currently
analysis, completed in November 2018
completing an update of our own research
and published in March 2019, examined
on green bond disclosure and impact with
a set of 1,905 bonds and the associated
publication scheduled for Q4 2020.
Green Bond Treasurer Survey Climate Bonds Initiative 10The cost of funding a green bond 14. Most respondents thought the costs of funding a green bond were
was regarded as cheaper than, similar to or less than a vanilla equivalent
or similar to, a vanilla bond
Chart 14 Respondents were asked how the
cost of funding for the green bond compared
to vanilla bonds. Just under half (48%) told Similar
us that the cost of funding green bonds was
similar to that of vanilla equivalents, while
42% considered the costs to be lower. For
Less
larger issuers, and those with more years
of experience in the green bond market, the
costs of funding for green bonds were lower
than for vanilla bonds. This may relate to Greater
spreading the costs of issuing the bond, as
well as incurring economies of scale, and
possibly achieving a lower interest rate.
For example, Berlin Hyp recounted that N/A
unique expenses, including the adaptation
of IT systems and internal processes, were
incorporated into the cost of its first green 0 10 20 30 40 50
bond, but the ramifications extended to Number of respondents
subsequent issues.
98% said their green bond 15. Almost all respondents 17% agreed that the demand for green bonds
attracted new investors… said their green bond attracted was generally higher. Nearly a third (28%) of
new investors the respondents said that they were able to
Chart 15 A new investor base is an oft cited
increase visibility and boost their reputation
feature of issuing green bonds, and 98% of
No 2% through accessing additional investors.
respondents agreed that their green bond
This can lead to more awareness in the
attracted new investors. This was particularly
marketplace beyond the usual scope, as well
helpful for issuers of bonds normally sold to
as encompassing new geographic regions.
a predominantly domestic investor base. The
The new investor base was something that
green label appears to act like a magnet to
respondents perceived as an advantage
attract the interest of socially responsible or
when it came to repeat issuance.
green investors regardless of domicile.
The ‘stickiness’ of green bonds was
...bringing numerous gains highlighted by 13% of respondents. Investors
tend to hold on to their green bonds rather
Chart 16 When asked to describe the value
than selling them. This adds stability to the
of new investors, the majority (59%) of
secondary market, which in turn is attractive
respondents named a more diverse investor
to investors.16
base.15 Respondents commented that this Yes
brought benefits for future financing and 98% Several respondents declared that green bonds
enhanced liquidity of the instruments, as well offered exposure to new communities of
as higher oversubscription levels. The latter investors. For example, a traditional EUR issuer
may help to secure cheaper pricing, and sold a green bond in USD. The green label
nearly a quarter of the respondents (24%) caught the attention of new investors, who as
stated directly that they perceived this or a result, became familiar with the issuer and
lower interest rates as a benefit, whereas started buying their vanilla bonds as well.
16. Benefits of new investors
Cheaper Pricing 21 Enhanced Visibility 24 Higher Stable
Demand 15 Secondary
Market 11
Contribution to Increased Stakeholder
Group Strategy 7 Engagement 9
Green Bond Treasurer Survey Climate Bonds Initiative 11Exchange listing
Green bonds can be listed on any exchange
Name of Stock Exchange Type of Dedicated Segment Launch Date
with a bond platform, just like vanilla bonds.
As of January 2020, 17 stock exchanges Oslo Stock Exchange Green bonds January 2015
offered dedicated green bond sections,
Stockholm Stock Exchange Sustainable bonds June 2015
providing additional visibility to the green
bond label. Assistance and services vary, London Stock Exchange Green, social, & sustainability July 2015
but generally stock exchanges can provide bonds
guidance and support to issuers. Listing
Shanghai Stock Exchange Green bonds March 2016
green bonds can offer improved access,
flexibility and transparency for investors. Mexico Stock Exchange Green bonds August 2016
Climate Bonds published The Role of
Luxembourg Stock Exchange* Green, social, & sustainability September 2016
Exchanges in Accelerating the Growth of the
bonds
Green Bond Market on this subject in 2017.17
Italian Stock Exchange Green & social bonds March 2017
Issuers can and do list their bonds on
multiple exchanges to enable maximum Taipei Stock Exchange Green bonds May 2017
exposure. The green bonds in our sample
Johannesburg Stock Exchange Green bonds October 2017
ranged from zero to 12 listings on 40
different exchanges. Only 14 respondents in Japan Exchange Group Green & social bonds January 2018
our sample did not list their green bond on
Vienna Stock Exchange Green & social bonds March 2018
any exchange.
NASDAQ Nordic & Baltics** Sustainable bonds May 2018
The International Stock Exchange Green bonds November 2018
Frankfurt Stock Exchange Green bonds November 2018
Moscow Exchange Green & social bonds August 2019
Euronext Green bonds November 2019
NASDAQ Sustainable Bond Green, social, & sustainability December 2019
Network*** bonds
*LuxSE created LGX as a dedicated platform for green, social and sustainability bonds
**Nasdaq’s joint offering of sustainable debt segments are operated by Nasdaq Europe. Sustainable bonds are currently listed on
Nasdaq’s sustainable bond markets in the Baltics, Copenhagen, Helsinki, Reykjavik, Stockholm and Vilnius
***The Nasdaq Sustainable Bond Network is not a listing venue but a transparency platform open to all green, social and
sustainability bonds meeting its inclusion criteria, regardless of the listing status.
Listing green bonds brings 17. Visibility is the main benefit of listing green bonds on a stock exchange
visibility
Chart 17 Respondents were asked to select Secondary
as many reasons to list green bonds as were market
applicable, and perceived listing green bonds liquidity
to be a helpful exercise. Visibility was the Perception
most popular choice (74%), followed by
perception (of being a green organisation)
Integrity
(57%), integrity (36%), and secondary
market liquidity (31%). The integrity refers
to the credibility of the bond. Smaller issuers Visibility
and those that have been active in the green
bond market for less time ranked visibility and Tax
perception to be relatively more important
than the average respondent. Larger issuers N/A
viewed secondary market liquidity as a
greater benefit of listing green bonds than 0 20 40 60 80 100
smaller issuers (41% vs. 18%). %
Green Bond Treasurer Survey Climate Bonds Initiative 12Most actively decided on their 18. Criteria guiding the listing venue decision
listing venue
Chart 18 The majority of respondents
(64%) actively selected their listing venue. Critical mass 23%
This percentage was lower for issuers
which had recently entered the green bond
market (50%). Respondents were asked to
Local to head office 25%
name the criteria guiding the decision and
could select as many as were applicable.
The most frequently selected reason was
Local to domicile of 15%
familiarity, with 29% opting to remain target investors
with their legacy platform. Those who
selected this option said they had done
so because they were satisfied with the Fiscal considerations 3%
guidance they received and the platform
afforded good visibility.
Familiarity 29%
Proximity to head office (25%) and critical
mass (23%) were the second and third
most popular reasons. A very small minority
(3%) selected fiscal considerations as Other 23%
their motivation. The ‘Other’ category was
chosen by 23%, within which, 10% gave no % of Yes replies
further explanation, 8% said they had been
attracted by the green segment, and 5% said
the exchange had invited them to list there.
Choice of listing venue Liquidity is important to green
bond issuers
Almost two thirds (62%) of respondents
said that they were satisfied with their Respondents were asked whether they cared
“If the traditional listing venue current listing venue. Smaller issuers said about the level of liquidity of their green
offers a green bond platform, they would be more inclined to consider bond in the secondary market, and 70%
it makes perfect sense changing it mainly for better visibility indicated that they did. This percentage was
to use that” among their target audience. Responses greater for larger issuers (82%). Several
to this question and those who had cited respondents observed that vanilla bonds
Peter Kammerer, Head of Investor
satisfaction with their current venue in offer scant liquidity, and green bonds trade
Relations, Landesbank Baden-
response to the previous question, suggest even less since they are mainly bought by
Wurttemberg
that the choice of listing venue tends to be “buy and hold” investors. NWB added that
long term. the liquidity is one sided: selling a green
bond is easy, buying one, less so. Within this
context, issuers try to do everything they can
to ensure their bonds are as easy to buy and
What is liquidity? cannot buy bonds on the secondary market
sell as possible, and this may include listing
unless they are listed on at least one stock
The concept of liquidity is relative them on stock exchanges.
exchange. Not listing could limit liquidity
and difficult to measure but generally
to the degree that green bonds trade on
describes the ease with which one can
the secondary market, however, this is not
buy or sell securities without causing
exclusive to green bonds.
large price fluctuations in the market.
The illiquid nature of many non-sovereign There is evidence to suggest that even
bonds can be because bonds are limited during periods of volatility when investors
in size, but share similar characteristics need to liquidate some of their assets,
such as duration, credit rating, green bond prices remain steady compared
sector or seniority, and are therefore to vanilla equivalents. Jason Mortimer
interchangeable. (Nomura Investment Management, Tokyo)
conducted research on this subject and
Bonds are usually most active in the first
concluded that the green label does indeed
month post issuance. Liquidity then severely
offer downside risk protection. A short
diminishes as investors hold onto the bond
summary of Jason’s research was featured
either until there is a credit event, or until
in Climate Bonds Pricing Paper July-
the bond is called or matures. For green
December 2018.18
bonds, this is further exacerbated by supply
and demand imbalances. Some investors
Green Bond Treasurer Survey Climate Bonds Initiative 13Post Issuance
Green bonds experienced higher 19. Most respondents said 21. Most respondents plan to
demand compared to vanilla demand for their green bond was issue more green bonds
Chart 19 Seventy percent of respondents
higher than their vanilla bonds
stated that the level of demand for green
N/A 5% Unknown
bonds was higher than the demand for
previously issued vanilla bonds, while 25% Lower 0%
said the same, and 5% were N/A (those Reopen
responding did not have access to that data
Same
point). None of the respondents related
25% Issue more
that they received less interest in its green
bond compared to vanilla equivalents.
These findings are supported by the Climate No
Bonds Green Bonds Pricing in the Primary Higher
Markets research (Pricing Papers) which has 70%
monitored green bond pricing since 2016. 0 20 40 60 80 100
The Pricing Papers state, that in general, % Yes
green bonds tend to be more oversubscribed
and experience greater spread tightening Respondents told us that, on average, 50%
“We have a commitment to
during book building compared to vanilla of their green bond deals were allocated to
sustainability and green capex
equivalents.19 investors with an explicit green mandate and
and financing, and therefore to
this proportion increased with issuer size.
The green bond demand was reported to be green investors. It is also worth
The numbers given ranged from 100% to
higher by issuers in the market for less than noting that these investors
5%. Again, this is supportive of the findings
a year, and marginally, by larger issuers. The
in the Pricing Papers, which conclude that
provide more stability in the
results of the Investor Survey highlighted
as of mid-2019, on average, 53% of green
secondary market”.
that European investors wanted to buy more
bonds were allocated to investors describing Joseba Mota, Head of Fixed Income and
green bonds of all types, and in that context,
themselves as green. SRI, Investor Relations, Iberdrola SA
this finding is unsurprising. European
investors are currently more engaged than Sixty respondents were able to provide an
those in other regions, but the low supply answer to this question. The remaining 26
of green bonds means that the increased either didn’t know the precise numbers
Most respondents plan to issue
demand extends to all markets. or were not confident with sharing the
more green bonds
data because of a lack of clarity about the Chart 21 Most respondents plan to issue
On average, half of green definition of a “green” investor. IFC noted that more green bonds (88%), while 15%
bonds were allocated to green when it issued its first green bond in 2010, the stated that they will reopen existing green
investors concept of categorizing investors as “green” bonds. Only one respondent explained they
or “ESG investors” was not the standard. neither wanted to issue more green bonds
Chart 20 Green bonds are boosted by a
nor reopen its existing one, because it had
unique source of support in the form of It was a nascent reverse enquiry driven
decided to issue under a different label (see
investors having either dedicated green bond product at the time. However, two
box on page 18). This gives credence to the
mandates or a sustainable investment bias. respondents declared ‘the majority’ and
fact that issuing a green bond is a positive
Non-dedicated investors have no reason another two asserted that ‘a significant
experience for the issuer. Forty-eight out of 86
not to buy green bonds in principle. Further, proportion’ was allocated to green investors.
respondents have already issued more than
larger green bonds are eligible for inclusion
Giving preferential allocations to green investors one green bond and seven reopened their first
in benchmark bond indices, meaning that
can enhance the visibility of a green bond. Some, bond. Those in the unknown category cited a
mainstream investors will also be obliged to
including SBB, said that they prioritised green current lack of suitable assets as a barrier to
look at them.
investors when issuing green bonds. committing to further issuance.
20. Deals issued by larger respondents were allocated to a higher percentage of green investors
Investors describing themselves as green Other investors
50% Average response
Large
Medium
Small
0 20 40 60 80 100
%
Green Bond Treasurer Survey Climate Bonds Initiative 14Larger issuers expect to issue 22. Most respondents plan to issue green bonds at least once a year
green bonds more often
Chart 22 Larger issuers (44%) and those % Small issuers % Medium % Large % All
with more than three years of experience
in the green bond market (48%) would 50
be more likely to issue green bonds more
than once a year. Smaller issuers with less
experience seem to be more inclined to
40
issue green bonds ad-hoc (41%). Overall, the
lowest frequency for repeat issuance was
less than once a year (15%) which, as one
would expect, was a more popular option 30
for smaller respondents. Some divulged they
had plenty of qualifying assets already on
their books that could be refinanced, while
others said that the frequency of repeat 20
issuance was contingent on green asset
production. For others, issuing green bonds
extended green asset production because as
10
a result of issuing a green bond, were invited
to support more opportunities.
For sovereign issuers running a surplus,
0
%
the management plan of a green bond is
more complicated. Bond investors rely More than Once a year Less than Ad hoc N/A
on sovereign bonds to fill a large part of a once a year once a year
broad market fixed income portfolio, and
liquidity/size are critical. If there are enough
suitable green projects, reopening may be
“The green bond programme is “Sustainability is a significant
a better solution for a sovereign since this
can be done in smaller increments without
in itself a business development part of Danske Bank’s strategy
fragmenting the yield curve. For example, the
outreach opportunity. and our ambition is certainly
Knowledge of it leads sponsors to be a recurring issuer in the
Green OAT (French sovereign) was issued
to create new eligible projects”. green bond market”.
in January 2017, and by February 2020 had
been tapped eight times reaching EUR22.6bn Denise Odaro, Head of Investor Jonas Wikfeldt, Senior Funding
outstanding (USD23.3bn). Relations, IFC Manager, Danske Bank
Green Bond Treasurer Survey Climate Bonds Initiative 15Sustainability
Perceptions of integrated Furthermore, two respondents stated that
sustainability varied in intensity there is a misconception in the market “Our commitment to
that sustainability costs are “additional”. sustainability was strong due
Respondents were asked to describe their
perception of integrated sustainability. The
Many argue that integrating sustainability to the nature of our business.
is a part of risk management and leads to The green bond improved this
sample included organisations of which
closer collaboration internally. A fair share of commitment”.
the core activity is “green”, such as Renewi,
respondents stated that it involved additional
and those that were established without Adam Richford, Treasury and Investor
work but most thought it was worth the effort.
sustainability goals, but most of which seem Relations, Renewi Plc
to be shifting both the business model and
strategy towards that of a sustainability-
Green bonds positively impacted
oriented company. The respondents
commitment to sustainability
“Our ambition is to be regarded
described a variety of perceptions of what Asked whether the green bond had impacted
as a green issuer rather than
integrated sustainability means, ranging the internal commitment to sustainability,
from sustainability being a feature add-on, to 77% of respondents replied that it had. This
just an issuer of green bonds”.
having individual green business lines, and percentage rose to 96% for smaller issuers. Enzo Soi, Funding Manager, KBC Group NV
ultimately to the integration of sustainability
Generally, respondents recounted that the
considerations into every business decision.
green bond had enhanced or consolidated the
Respondents described different degrees internal position on sustainability, spreading
“Our green mortgage – a first
of integration. However, the consensus was understanding across various departments
that sustainability is becoming increasingly and enabling them to learn more about how
in the UK - was launched after
important. This is not just because they can contribute. Encevo stated that
the bond was issued”.
stakeholder groups other than investors are through the preparation of issuing a green Billy Suid, Head of Securitisation and
pushing companies to integrate such factors bond it identified existing assets that it had Secured Funding, Barclays
in business decisions but also because not known could be financed under such
organisations acknowledge that a company a label. Others mentioned that the green
with a sustainability focus may constitute a bond encouraged them to think about future
“It was our commitment to
less risky and more future-proof investment. projects through a sustainability lens. This
sustainability that led us to
Enel said that they believe a sustainable point is in fact critical, as the process of
issue green bond and act as
company is less risky compared to one that issuing a green bond offers an educational
takes a different approach. experience, giving issuers the motivation to
a corporate pioneer in this
audit what is being done, resulting in a deeper
market but indeed green
bonds have contributed to
understanding of the business. This enhanced
spread the sustainability
“Finance got more involved internal commitment also extended to
in the business; the business emphasising sustainability to a broad external
agenda”.
learned more about what was audience. Several lenders that we spoke to Philippe Meunier, CSR manager, ENGIE
suitable for green financing”. mentioned that the green bond motivated
them to design green lending products. Berlin
Roland Metzler, Head of Group Finance
Hyp stated that it is cheaper to finance green
and Tax, Encevo S.A.
rather than conventional buildings because “We now offer green loans to
green loans are less risky. In 2016 it issued customers”.
a USD650m green bond, and by December
In terms of green bonds, some respondents Philipp Bank, Funding & Investor
2019, its green issuance programme had risen
explained that they were an expression of Relations, Deutsche Hypothekenbank
to USD4.5bn.
an existing sustainability commitment and
some stated that the process of issuing a Among those that said no, several, including
green bond reinforced it. For instance, Zürcher the French Treasury and Credit Agricole,
Kantonalbank has offered preferential loans to observed that its strong commitment to
“Issuing a green bond has
energy efficient green buildings since 1992, sustainability and the environment had
shown clients and investors
and the green bond spotlighted these efforts. resulted in the green bond, not the other
that our commitment to
way around. Credit Agricole described this
EBRD explained that organisations don’t
commitment as part of its mission to have a
sustainability is serious”.
have to be sustainable immediately, they
societal impact. Others, such as the Nordic Janice Daly, Head of Sustainable
should have embarked on the journey and
Investment Bank related that its decision to Finance, LeasePlan Corporation N.V.
have articulated a credible plan to achieve
issue a green bond had been taken to enhance
sustainability. This is consistent with the
its business, rather than transform it.
emerging trend that companies should start
transitioning from brown to green business lines, Green bond issuance and organisational
while acknowledging that this will take time. commitment to sustainability seem to be
Sparebank described how its traditional lending inextricably linked. If policy makers wanted
business was linked to the oil industry; green to encourage organisations to be more
bonds offered an opportunity to transition to sustainable, one option could be to insist
green lending and de-risk its business. that all bond issuance be green.
Green Bond Treasurer Survey Climate Bonds Initiative 16You can also read
