Anthropocene Fixed Income Institute

 Media reports indicate that SBI is looking to provide USD650mn of fresh funding to Adani Enterprises and the Carmichael coal mine build. We think traditional bond investors, green bond investors and development banks should consider if the SBI's potential actions are in line with their climate targets. 

 iven a potential Carmichael loan from SBI, we review who are the  main banking transaction parties having exposure to such a -in our  opinion- greenwash. MUFG and HSBC come out on top.  

(23 Nov 2020)

A green bond market where issuers can directly  finance what has been called “the world’s most insane energy project”  and still claim credit for refinancing a dozen of windmills deserves to  be questioned. 

Could we avoid it? We look into the State Bank of India potential Carmichael coal loan. (25 Nov 2020)

 The biggest USD bond funder of potential  Carmichael coal lender State Bank of India has a dominant private equity  owner,  top-three firm Apollo Management. What does this mean for  (climate concerned) end investors in Apollo funds, and/or the PE  manager's engagement opportunity here?  

(10 Dec 2020)

A big potential State Bank of India loan to  the Carmichael coal mine is coinciding with a significant short term USD  refinancing hump in loans and bonds. Refinancing should be conditional  on stopping the Carmichael loan. We also look at how SBI green bond  syndicators HSBC and MUFG engaged in general purpose lending to SBI in  the run-up to issuing the 2018 green bond. We comment on such practices  in the context of ESG efforts and green bond credibility.

(10 Dec 2020)

In recent investor communications, State Bank  of India (SBI) is leveraging the credibility of multilateral  institutions like KfW, World Bank and EIB to detract from its potential  Carmichael coal mine development loan. We believe those institutions,  and KfW in particular (with over USD1bn in credit lines), have a duty to  distance themselves from being part of such marketing efforts.

( 5 Feb 2021)