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)
A real-time case study
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)