Anthropocene Fixed Income Institute

The Dalrymple Bay IPO continues to be an open wound for anyone invested. With the stock down 26% vs benchmarks, one can understand why certain stakeholders, such as controlling entity Brookfield (home of Mark Carney) and NBIM, would argue for a socialisation of coal clean up costs. One does not have to agree though.

 Canadian asset manager Brookfield looks set to launch a multi-billion dollar climate fund. And a coal expansion making Dalrymple Bay into the world's biggest coal export facility. If there were a word for such strategies. 

(11 Feb 2021)

 The Dalrymple coal terminal is one of the world's biggest pieces  of coal infrastructure and is being put up for sale by Canadian asset  manager Brookfield. It is not going dandy: the teaser prices appears to  have been revised downards (and size cut back) as the IPO enters the  retail marketing stage. There is a lot to comment on: relative dividend  yields, funding cost stress test, bridge loans, coal business model  viability, investor diversification, governance and technical execution  risks. 

A grim tale of issuance of green bonds, while  actively expanding the coal export industry. Queensland, poulation 5mn,  would be the world's second biggest exporter of coal if it were a  country.  The state's narrative around its climate change mitigation  effort through issuing green bonds is not credible.

For  avoidance of all doubt, the AFII is a strong supporter of the green  bond market. That green bonds sometimes go wrong just makes them...  equal to other bond

 Following the critique of papal letters of absolution  (‘indulgences’) of old times, we believe a recent AUD1mn contribution  from HSBC Australia and the Queensland government to Reef Credit, a  program to reduce agricultural offset into the ocean and thus spare the  Great Barrier Reef from sediments, does not rectify QLD’s role as a top  global coal player. d