According to the Wall Street Journal, the Swedish music streaming service Spotify is near to rise 400 million dollars in a new deal, which would mean the market valuation of 8,4 billion dollars. According to the newspaper, Goldman Sachs and Abu Dhabi sovereign wealth fund would be the main financiers and this deal would place Spotify as one of the high-valued tech companies.
Amundi Asset Management says that impact investing is about long-term support for social businesses. According to the company the goal is to generate quantifiable social impact for clients, over and above the search for financial returns. Amundi Asset Management has over 900 million euros in SRI assets under management.
– We select amongs the many social businesses that we meet with, those most likely to generate the greatest social impact over the long term, while offering prospects for sustainable economic development. By investing in these non-listed social businesses over the long term, we encourage the emergence of a whole new sector of the economy, meeting crucial social needs while offering all types of investors a real investment solution, the company says.
The European Investment Bank (EIB), the EU Bank , has increased the Climate Awareness Bond by 400 million euros last week. The tap reinforces the benchmark character of the issue, which, now at 3 billion euros, continues to be the largest Green Bond outstanding in any currency. The increase carries a coupon of 1.375% and was priced in line with the existing EIB Coop curve at MS-30. It constitutes EIB’s first issue ever priced at negative rates.
The transaction came on the same day as EIB’s Annual Press Conference in Brussels, where President Hoyer announced the key results achieved in 2014. Last year, the EIB dedicated over 19 billion euros, or 25% of its total lending activity, to climate action. Joint Bookrunners for the transaction were Crédit Agricole CIB, Credit Suisse, Nomura and Standard Chartered. EIB is rated Aaa/AAA/AAA by Moody’s , Standard and Poor’s and Fitch.
Eila Kreivi, Director, Head of Capital Markets, EIB, said: “Today’s issue underlines the strong lending activity of the EIB in favour of climate action, and reinforces our support for the sustainable development of the Green Bond market. At a size of 3 billion euros, CAB 2019 has attained benchmark status in its own right, highlighting the popularity of this bond.”
Massimo Antonelli, Director SSA DCM, Credit Suisse, said: “With today’s EUR 400m increase of the CAB Nov-19, the European Investment Bank was able to reinforce its commitment to lending activities in support of climate action, in line with its policy. The EUR 3bn CAB Nov-19 is now the largest outstanding Green Bond in any currency and with this transaction the European Investment Bank was able to achieve for the first time a negative re-offer yield.”
Timo Zwez, Head of Sovereigns, Supranationals and Agencies Europe, Standard Chartered, said: “With another record year in green bond issuance behind us EIB continues to lead this segment in 2015 once more with this EUR 400m tap. Not only is this bond offering EIB a fantastic funding opportunity with pricing at a negative yield but also they manage to increase the issue size to a liquid size of EUR 3bn. For SCB this is another great Green Bond Issuance highlighting our commitment to Climate Awareness Bonds (CAB) of EIB as well as the Green Bond Principles and the Climate Bonds Initiative.”
The leading Swedish Pension Fund AP4 is focusing on governance and climate change issues. In PUB+ interview the managing director Mats Andersson, also the Ambassador of UN Decarbonazation Coalition, says that they have done the portfolio decarbonazation over three years ago and their target is that by 2015 they have all the equity assets as low carbon assets. Mr Andersson was speaking in EarthRate ESG discussion in Stockholm.
-This year we will analyse the Asian markets and Japan. We have done the earlier
research related to US and European markets. This work has helped us to
minimize the carbon output by 50 per cent, he says.
– In Sweden our focus is on Governance and Climate Change. Abroad we will
focus on working together with other AP funds and other engagement
funds, especially in Japan, he says.
Andersson says that good governance is about diversity, owner-driven strategies and transparent policy.
The fund assets were 295 billion Swedish kronor and the fund is also awarded by the IPE as the Best Public Penson Fund in 2014. According to the company during the last 10 years the total return has been 7,6 per cent in average. Last year the total return was 15,7 per cent after the costs and the fund made their record profit of 40 billion Swedish kronor.
The largest oil fund in the world, the Norges Bank Investment Management (NBIM) has published its guidelines and information regarding last year. According to the CEO of the fund, Mr. Yngve Slyngstad, the fund made 49 divestments last year. One of the biggest reasons for divestments were the environmental risks in the portfolio company.
– Our fund has a long-term perspective in responsible investing and we are a large, international investor. For us, the global standards are important in our valuation process. For example the UN Global Compact and OECD principles for international companies are examples for us that the company is having responsible business processes and management. We have invested in over 8000 companies in 82 different countries so they are important guidelines for us. During last year we have also developed our prosesses regarding the environmental issues, Mr. Slyngstad said.
– Last year we have increased our investments in renewable energies, energy efficiency and efficiency in the natural resources. And this is part of our investment strategy that we pay more attention to climate change issues, water mangement and children rights. The other elements in our investment strategy are: equal treatment of shareholders, shareholder influence and board accountability, legitimate and well-functioning markets and risk management.
The oil fund market value is 6534 billion Norwegian kronor and 60 % are in equities, 35 % in fixed income and 5 % in real estate. 45 % of the fund is invested in Europe, 35 % in North America, 16,5 % in Asia and 3,5 % rest of the world. According to the governace of the fund, the fund can have max 10 per cent of the voting shares in a company. The return of the fund has been 5,7 per cent from the establishment in 1998 to the end of 2013.
Apple has issued new long-term bonds worth 6,5 billion dollars. According to the company the new series of different maturity bonds have been made to take advantage of a drop in borrowing costs to fund its aggressive share buyback programme. The company has boughts its own shares worth 45 billion dollars back during the past 12 months.
The long-term bechmark bonds have been in all time low during the recent weeks. For example the US-30 year Treasury has been 2,22 per cent, UK benchmark at 2,02 per cent and German Bunds at 0,97 per cent.
CEO Timo Ritakallio from Ilmarinen says that the pension fund has integrated ESG issues into its investment processes. He says that Ilmarinen also engage with companies and try to achieve improvments through active dialogue. He was speaking in EarthRate´s ESG Conference in Helsinki last week.
– In addition to the norms based assessment we assess company specific ESG risks that can be strategic, operational, financial or compliance related. For us it is also important to see how companies are turning ESG impacts into business opportunities.
– Ilmarinen also compares companies within industries and markets in terms of ESG risks and prepardeness. This enables us to identify industry leaders and laggards. ESG analysis also targets, how company can cope big megatrends like climate change, natural resources scarcity, water issue or urbanization, he says.
Ilmarinen is a pension insurance company and its portfolios market value is over 34 billion euros, of which Finnish equities are about 3 billion euros. The biggest holdings are for example in Nokia, Sampo, Kone, UPM Kymmene and Metso. And in the small cap companies there are Suominen, Technopolis, Basware, Talentum and Tikkurila.