Indeed, 2019 was a breaking point to set this financing measure as a reference, as $255bn was issued during the course of the year; representing a 49% increase compared to the previous year. According to Climate Bond Initiative, the broad view of green investments is expected to reach a staggering $1 trillion; an emblematic figure that serves as proof in this decade of change.
The previous year also had the EU as the dominant green bond market provider ($106.7bn), with clean energy representing the bulk category of bonds exchanged (31.5%).
Benefiting from favorable geographic terrains, Portugal’s wind and solar power plants are growing in abundance. Feeding of these demographic conditions is Energias de Portugal (EDP), which through its Renewables subsidiary EDP R has formed a renowned green portfolio that is impacting economic outcomes at both industry and nation level.
EDP is well familiar with this financing mechanism, as it has been issuing green bonds since 2018. Portugal’s largest energy provider and the third largest in Spain started 2020 by issuing its third green bond issuance, a further $814,125m* with a maturity date prolonging to 2080. According to Bloomberg, the demand for EDP’s bonds more than exceeded the quantity issued, which was estimated to be worth four times higher than what was offered.
The figures show the alignment between the issuer EDP, who furthers its vision and statement, and its investors, who opt to diversify their portfolio with responsible investing. Through this financing measure, the firm will be enhancing its green portfolio, which consists of renewable energy production projects, such as wind power plants and solar power plants.
The world’s fourth largest wind energy producer emerges as an example in its sustainable investment approach for several reasons. Mainly:
Diversifying portfolio risk through alternative, greener approaches can enhance corporate value. In addition, it helps companies pave their sustainability journey and ensure actions which foster impact investing, as EDP demonstrates. If you are interested in learning more about how Finch & Beak helps companies ensure that they focus on long-term value creation, please contact Nikkie Vinke, Senior Consultant, at firstname.lastname@example.org or say hello by calling +34 6 82 04 83 01.