mastering green bonds - informa connect · contact: tel: +44 (0)20 7017 7190. email:...
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Contact:www.iff-training.comTel: +44 (0)20 7017 7190Email: [email protected]
MASTERING GREEN BONDSA complete guide to the climate, environmental, social and sustainability bond markets
FACE-TO-FACE IN LONDON OR VIRTUAL CLASSROOM
COURSE INFORMATIONThe issuance of green bonds has grown rapidly in recent years. This timely case study driven course has been designed to equip you with all the knowledge you need in order to participate effectively in discussions about the issuance of green bonds and understand the opportunities which exist for investors. The course starts with a brief but detailed review of bond pricing. You will learn how to approximate prices and yields at a glance, before exploring the bond maths functionality in Excel. Having mastered the fundamentals of the international bond markets you will then focus on a series of case studies designed to give you a complete picture of every aspect of green bonds, climate bonds, environmental bonds, social and sustainability bonds.
YOU WILL LEARN: . Best practice guidelines:
• ICMA’s green bond principles• ICMA’s social bond principles• ICMA’s sustainability bond guidelines
. Who issues green bonds and who buys them
. The relationship between green bonds, climate bonds and other bonds
. How climate bonds work
. Types of green bonds and types of interest calculation
. Types of environmental project eligible for green bonds
. The current state of the climate-aligned bond universe
. Bond market pricing and bond market valuation techniques
. Buy-side considerations: integrating green bonds in investment strategy and practice
. The perspectives and roles of the key players in the green bond market: regulators, investors, underwriters, issuers, external reviewers, rating agencies, stock exchanges, data and index providers
. What drives the market
. The current market trends for green and climate bonds
. Potential future developments in the green bond market
HOW YOU WILL LEARNThis course will take place in London for those who are able to travel but if you can’t be there in person, a digital version is also available. Either way, you will have access to the same trainer, insights, content and practical sessions.
THE VIRTUAL CLASSROOMWe have been delivering online training for many years and know how to ensure the interaction is the same as if you were in the room. Class sizes will be capped to ensure every delegate will be guaranteed quality time with the trainer. You will be able to ask questions, give feedback and participate in the practical sessions.
THE FACE-TO-FACE COURSE IN LONDONIf you choose the London option, we want to assure you that we will comply with safety recommendations. We will cap our course numbers at 8 participants. This, and the way we will set up our training rooms, means you will have the space you need to maintain social distance. Hand sanitiser will be readily available on arrival and on desks.
YOUR SAFETYOur number one priority is the safety of our delegates and colleagues, especially in the light of recent health concerns across the world. In addition to this, Informa AllSecure adds a further layer
Please contact a member of our team for more details
CONTACT US+44 (0)20 7017 [email protected] www.iff-training.com
of health and safety best practice standards and guidelines, that will be followed at our events wherever applicable and possible. These measures will focus around four key areas: cleaning and hygiene, communications, protect and detect and physical distancing. They’re designed to provide you with confidence that at any Informa event around the world, we’re striving to provide the highest standards of safety, hygiene, cleanliness and quality.
Our customer services team are here to answer any specific questions about how the courses will run - please contact them on [email protected].
BOOK WITH CONFIDENCE:If you book the London or online option and change your mind further down the line, we can easily switch it for you and amend the price accordingly.
COURSE LEADERALAN MCDOUGALL
Alan has been helping banks and their clients manage risk for over 30 years. He has designed and delivered over 2000 highly-interactive training days, in 45 countries, for the International Faculty of Finance, Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America Merrill Lynch, HSBC, Deutsche Bank, BNP Paribas, Societe Generale, Credit Agricole,
UBS, Credit Suisse, Barclays, Nomura, Rabobank, The Bank of England, The Financial Times, The London Stock Exchange, The European Stability Mechanism, the Universities of London and Cambridge, OPEC, the United Nations and many others.He ran a currency swaps book for HSBC’s International Treasury Management Group where he also advised banks and multinational corporations on the design and execution of their hedging, asset-liability and risk management strategies. He traded a proprietary fixed-income book at Scotia Capital Markets as well as running training courses for the fixed income traders, the salespeople and the Debt Capital Markets team.The International Foreign Exchange Dealers Association (ACI) commissioned him to write ‘Mastering Swaps Markets’, published by the Financial Times and the University of Shanghai. He holds an MSc in International Banking and Finance, plays the clarinet in one of London’s orchestras, is a keen tennis player, has a golf handicap of 7, and is the academic advisor to the award-winning financial education company INVSTR.
DATES & PRICE
DAY ONEReview: How the Bond Markets Work• Standard clauses: pari-passu provisions, negative pledges and
cross default clauses• Mark-to-market and accrual accounting• How bond pricing works
CASE STUDY:
Examining a new international bond issue from the perspectives on the issuer, the arrangers and investors
CASE STUDY:
DC Water Green Bond Report• DC Clean Rivers Project• DC Water’s Green Bond and Annual Reporting
Commitments• Use of proceeds• Environmental and social outcomes• Responsible management
Pricing Principles• Approximate and precise NPVs of trades• The role of the bid/offer spread• Intrinsic values, in-, out- and at-the-money prices• Identifying the winner and the loser in a trade• Symmetrical risk and asymmetrical risk products• Day count conventions; accrued interest; clean and dirty prices• Brealey & Myers: the things we know and don’t know about
finance
EXERCISE:
Calculating bond prices at a glance
Best Practice Guidelines and ICMA’s Green Bond Principles• Green bond definition• GBP: Green Bond Principles
– use of proceeds– process for project evaluation and selection– management of proceeds– reporting– external review
• Types of green bonds• Who supports the GBP?• The governance framework for the GBP
CASE STUDY:
China – transition to a low carbon economy• Largest country of issuance in the climate-aligned universe• Leader in driving growth in the labelled green bond market• China Green Bond Index
Green Bonds and the Climate-Aligned Bond Universe
CASE STUDY:
Green Bond European Investor Survey• Investment preferences• Preferred investment categories• Investment decision making• Moving the market forwards• Emerging markets• Green halos, private placements and SRI bonds
Climate Bonds• The climate bond market• Types of climate bond• The Climate Bonds Standard and the Climate Bond Standards
Board• Relative prices of climate bonds and other bonds• CBI: the Climate Bonds Initiative• Purpose of the Climate Bonds Initiative
CASE STUDY:
The US Municipal Bond Market – Green City Bonds• Climate-aligned investment opportunities• The top 3 climate-aligned bond issuers• Use of proceeds• Labelled green bonds
Issuing Bodies • National governments• Supranationals• Green investment banks• Municipalities • Public-private partnership• Purchase contracts
CASE STUDY:
Issuing a green Muni bond• Projects which qualify for green bond issuance• External second opinions• Three reasons to issue green muni bonds• How to get certified
DAY TWOTypes of Bonds• Climate Bonds Initiative, three broad categories
– organisation-guaranteed bonds– asset-backed securities or secured bonds– dual recourse bonds
• Standard green use of proceeds bonds• Green revenue bonds or ABS• Green project bonds• Green securitised bonds: ABS, covered bonds, MBS• Covered bonds• Loans• Other debt instruments
CASE STUDY:
Apple Inc, green bond, 0% November 2025, Apple Inc, green bond, 0.5% November 2031
• Green bonds and climate bonds• Issuers of green bonds and climate bonds• Green definitions• GBCC: Green Bond Certification Categories• The benefits of green bonds• Certified climate bonds• The CBI green bond database• Climate-aligned issuers• The climate-aligned bond universe
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
COURSE AGENDA
Calculating Interest Rates • Fixed• Floating• Zero-coupon• Carbon linked
CASE STUDY:
DC Water Green Bond USD 350,000,000 Green Bond July 2114• Why DC Water issued a green bond• The benefits of having a second opinion• The financial benefits of overwhelming market demand• Feedback from other stakeholders: media, Board, and
utility ratepayers
Pricing Green Bonds• Initial eligibility criteria• Continuing eligibility criteria• Trends in investor demand
– mainstream institutional investors– specialist ESG and responsible investors– corporate treasury– sovereign and municipal governments– retail investors
> millennials > generations x,y and z
• The Global Investor Coalition on Climate Change
EXERCISE:
Green bond programme information template
EXERCISE:
Green bond programme external review form
The Current State of the Climate-Aligned Bond Universe • Latest developments• The role of institutional investors• Labelled green bond issuance• The green bond market sectors
– transport– water– energy– buildings– industry– waste and pollution control– agriculture & forestry– information and communication technologies
• Future themes• Geographic spread
CASE STUDY:
Transport for London - GBP 400,000,000 green bond 2.125% April 2025• Market timing• Internal buy-in from the board and senior management• Green credentials - following best practice with a second review• Market demand• Tracking of green bond proceeds• Reporting on green bond use of proceeds and environmental
impact• TfL’s success paves the way for other low-carbon transport
green bonds• Issuing a low-carbon transport related green bond
The 10-Point Case • Challenge• The solution paths and barriers are largely understood• Urgency, Catch 22 and developing countries• Climate bonds can fund the transition to a low-carbon economy• Volumes required• There is more than enough private capital in the world to fund
the necessary transition• Institutional investors will invest in long-term climate bonds
given adequate and secure returns• Specific initiatives will depend on delivering secure, long-term
returns at competitive levels of risk, rather than on valuesarguments
• Transition to a low carbon economy presents the largestcommercial opportunity of our time
• Achieving the scale and speed of development needed willrequire an active enabling role on the part of governments, at alllevels
CASE STUDY:
Lessons from Japan• Bonds as instruments of intermediation• Long term credit banking• LTCBs and municipal bonds• Strengths and weaknesses of the system
Summary: Environmental Theme Bonds - A New Fixed Income Asset Class• Shifting capital flows• 21st century theme bonds• Liquidity subject to contingent definitions• Drivers for a sustainable debt capital market• Re-weighting by institutional investors• Large investors taking an interest in carbon risk• Legislative and regulatory pressure• Constraints on public spending• Potential to become a significant fixed income asset class• Issuance review
– World Bank - green bonds– European Investment Bank - climate awareness bond– US government - clean renewable energy bonds– how build america bonds worked– Triodos Bank - climate change bonds
• Potential for new issuance• Looking to the future
Review• Glossary of terms: Green Investment Bank Commission• Scaling up green bond issuance• Green finance: Green bond directions• Climate Bonds Standard
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
COURSE AGENDA
See the website for full details www.iff-training.com
IFF is the learning partner of
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE
Dates:20 April 202021 September 2020 London
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
Dates:19-20 March 2020 8-9 October 2020London
Contact:www.iff-training.comTel: +44 (0)20 7017 7190Email: [email protected]
SUSTAINABLE INVESTING Learn how to identify, structure and finance lucrative sustainable impact investments
Learning partner of
CLIMATE RISK & TCFDA comprehensive guide to climate-related financial disclosure and portfolio analysis
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
Dates: 27-28 April 202023-24 September 2020London
Learning partner of
Dates:7-11 October 2019London
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
A 5-DAY MASTERCLASS IN
BONDS & FIXEDINCOMELearn how to price bonds, trade the yield curve and manage risk
Learning partner
MASTERING SWAPMARKETSYour practical guide to understanding, analysing, assessing and taking advantage of the swap markets
Dates:9-11 March 20207-9 September 2020London
Contact:www.iff-training.com+44 (0)20 7017 [email protected]
Learning partner of
A SELECTION OF COURSES FROM THE DERIVATIVES & TRADING PORTFOLIO
ABOUT IFFIFF has been the chosen training provider of the world’s best finance and energy professionals since 1991. We are part of Informa PLC and the learning partner of the FundForum and RiskMinds series of events.
• We continually develop and improve our training to make it more effective for you
• You’ll learn from practising, highly-experienced financial experts
• You’ll experience interactive and practical training - implement what you learn straight away
• We limit class sizes so the trainer can adapt the content tosuit you
IN-COMPANY TRAININGIFF’s bespoke training solutions will help you address your specific key business challenges. The programme is designed for you, with content focusing on the issues you and your teams are facing. The course can then be delivered at your choice of location face-to-face, digitally or a combination of the two.
. Tailored content - 100% targeted to cover your needs
. No travel or time out of the office – we will come to you
. Value for money – train teams of staff at the same time
. Risk free – we’ve been doing this for over 30 years
For more information please contact Leigh Kendall on +44 (0)20 7017 7190 or email: [email protected]
CPD Certified:IFF is recognised by the CPD Certification Service and have been approved to award CPD points towards professional development certifications. Attendance at this course will earn you 40 CPD points.