Toxic Bonds’ Post

Today we are releasing the updated #Dirty30: the outstanding bonds issued by 30 of the worst fossil fuel expansionists. The data includes the amounts ($$), ratings, bank underwriters, ETF holders and more. 📈 In the shadows of the bond market, these corporations are igniting a debt bomb. In the next 12 months, these corporations will likely seek to refinance an astonishing $54 billion in maturing bonds. A few things have changed since the last update in October 2023… 🚨 4 new companies have been added to the list that no one wants to be on:  ConocoPhillips, Eni, PT Adaro Energy Indonesia Tbk and San Miguel Global Power 🤑 Over $17 billion in new bonds have been issued by Adani Group (1 bond, $409m, bp (3 bonds, $3.5b), ConocoPhillips (2 bonds, $1.7m), Eni (2 bonds, $2.1b), Gazprom (7 bonds, $3.7b), Glencore (3 bonds, $2.5b), Korea Electric Power Corporation (KEPCO) (2 bonds, $1.5b)and PEMEX (1 bond, $2b). 🤝 Bank of America, Mizuho, MUFG, Citi, Deutsche Bank, Standard Chartered and J.P. Morgan have been underwriters of 4 or more of the $17b in new bonds. 🔗Learn more about the bonds funding the coal, oil and gas expansion of the dirtiest fossil fuel companies: https://lnkd.in/dSJm_N9q

🎉 BNP Paribas has stated that it will stop underwriting bonds for oil and gas producers! This is the FIRST Global Systemically Important Bank (G-SIB) to rule out this finance. 🆕 In its answers to written questions at its AGM on Tuesday, BNP Paribas stated that “we refrain from participating in conventional bond issues in the oil and gas sector”. This announcement is even more significant given BNP has facilitated over $2.7 billion in fossil fuel bonds since 2022. Now that the EU's biggest bank has dropped oil and gas bonds, will its peers follow? 👀 Barclays, HSBC, Crédit Agricole CIB, Citi, Mitsubishi Corporation, J.P. Morgan, Mizuho, Bank of America, RBC https://lnkd.in/dRVxpXzA

💥 In a major investigation, CORRECTIV exposes Allianz for its climate hypocrisy via its asset management arms PIMCO and Allianz Global Investors. Despite it's leadership on insurance, Allianz has a very dirty secret: PIMCO and AGI. In January 2023, PIMCO had over $9 billion, and AGI over $5.5 billion, invested in coal, oil and gas companies like Glencore, Adani Group, aramco and bp. Allianz touts their climate leadership. On its website, the insurance company promises that “every investment is checked for sustainability”. ... While in reality, “Allianz is a huge player in the investment business. With its two asset managers, it is by far the largest European financier of fossil fuel companies,” says Lara Cuvelier from Reclaim Finance - ONG. 👇 Read the article here [use google translate from German] https://lnkd.in/dPqzXF_h

📣 Over 78% of coal financing from banks comes from bond underwriting. Urgewald has released data showing that commercial banks provided US$ 470 billion in loans ($79.9 bill), bond ($369.8 bil), and share ($21.1 bill) underwriting to the coal industry between January 2021 and December 2023. The following banks were the top bond underwriters of the global coal industry outside of China: Mizuho ($.9 bill), JPMorgan Chase & Co. ($2.7 bill), Mitsubishi Corporation ($2.5 bill), Citi ($2.3 bill), Bank of America ($2.1 bill), Barclays ($1.7 bill). The International Energy Agency (IEA) Net Zero By 2050 scenario calls for a phase-out of coal in OECD countries by 2030 and for the rest of the world by 2040. Yet, the coal bonds underwritten by the banks have an average maturity date of 2032, meaning banks are helping finance coal companies well past the OECD deadline. All banks need to immediately stop all financing for coal, including underwriting.

Last week's Annual General Meeting at abrdn was anything but routine. As employees and shareholders convened, the call for urgent climate action was loud and clear, both inside and outside Edinburgh’s Assembly Rooms. Activists from made their voices heard with a powerful 'discobedience' dance and pointed interruptions during the meeting, challenging abrdn’s significant investments in fossil fuels. 🚫🛢️ With over $3.6 billion tied up in the bonds of coal, oil, and gas expansionists, abrdn is the fourth most exposed asset manager to toxic bonds. As a result, the pressure is mounting for abrdn to adopt a comprehensive fossil fuel exclusion policy. 🔗 Dive into our latest blog for a full account of the day's events and why this AGM must mark a turning point for the dis-emvowled asset manager. https://lnkd.in/dYe-tZaE

📣 Barclays and Deutsche Bank helped Glencore issue a €600 million bond, today. By underwriting these bonds, the banks are helping Glencore fundraise despite their climate commitments to achieve carbon neutrality by 2050 on a 1.5°C trajectory. Glencore is the world's 4th largest thermal coal mining developer with 8 thermal mining projects and extensions, and a planned total capacity of 63 Mtpa. Glencore is also the world’s biggest met coal producer outside of China following its recent acquisition of Teck Resources coal unit in November 2023. In addition to today’s new bond. 📣 The hypocrisy must stop: we expect Deutsche Bank and Barclays to address the climate emergency. This means committing to no longer support, including through bond underwriting, companies that continue to expand fossil fuels.

Ekō has filed a formal complaint requesting B Lab revoke Lombard Odier Group #BCorp certification unless they immediately commit to divest and deny new debt from companies deriving more than 10% of their revenue from coal, oil and gas. B Corporation certified companies are supposed to meet high standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community and the environment. Lombard Odier has not been transparent about its investments in fossil fuel companies, and continues to contribute to run-away climate change through its irresponsible investments. Contrary to its sustainable claims, Lombard Odier holds hundreds of millions shares and bonds issued by coal, oil and gas companies. An analysis of its investment funds by The Ferret revealed that 23 of its funds are invested in fossil fuel companies, including its investment funds with net zero targets. Lombard Odier’s bondholdings in Adani Group companies alone total over US $141 million. Lombard Odier’s investment in any arm of the Adani Group is violating its own – as well as B Corp’s – investment restriction policy of not investing in companies that derive more than 10% of their revenue from coal. Despite this, Lombard Odier invested in Adani Green’s ‘green bond’ which was Adani’s first USD bond offering since Hindenburg. https://lnkd.in/dvMap7Sf

📩 58 NGOs, led by Reclaim Finance - ONG, sent an open letter, calling on TotalEnergies' banks and investors not to participate in its upcoming bonds. The letters come just days after TotalEnergies raised US$4.25 billion on the bond market, with the help of several banks, including Standard Chartered, Deutsche Bank, Bank of America, Sumitomo Mitsui Banking Corporation – SMBC Group, Natixis Corporate & Investment Banking, MUFG. TotalEnergies currently has 45 active bonds worth over US$48.9 billion, with 4 due to mature this year. Between 2016 and 2022, bonds were the main source of financing for TotalEnergies (68%), with dozens of banks and investors helping the company raise more than US$37.6 billion through bonds over that time. While the IPCC (IPCC) calls for no more new fossil fuel projects to be developed to limit global warming to +1.5°C, TotalEnergies plans to develop oil and gas projects in 53 different countries. 📣 To stop Total's oil and gas expansion: ➡️ Investors must commit to no longer invest in any new bond purchases issued by TotalEnergies. Some of Total's biggest bondholders include abrdn, Allianz/PIMCO, BlackRock, UBS, Groupe Crédit Agricole. ➡️ Banks must commit to no longer facilitate the issuance of any new bonds by TotalEnergies. Banks underwriting the most Total bonds include Citi, Barclays, Societe Generale, Groupe Crédit Agricole, Deutsche Bank, BNP Paribas, RBC, HSBC. https://lnkd.in/dp_eEFnr