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CPPIB to Become First Major Pension to Issue Green Bonds

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On the back of the G-7 summit in Quebec, the Canada Pension Plan Investment Board (CPPIB) announced plans to issue green bonds dedicated to generating funds for investment in wind and solar power, sustainable water and waste management, and energy-efficient buildings, making it the first large public pension fund to sell debt securities for the backing of eco-friendly projects.
The AAA-rated fund’s statement said the inaugural bonds will be denominated in Canadian dollars and issued on a private placement basis to certain qualified accredited investors, but did not specify when the sale would take place or how much would be on offer.

Increasingly Canadian pensions such as PSP Investments, CDPQ and CPPIB have been snapping up renewable energy plants, whether in wind or solar, across North America and in some instances in Europe and Latin America.

“The issuance of green bonds is a logical next step to CPPIB’s investment-focused approach to climate change, and we are pleased to be a pioneer among pension funds in this regards,” said Poul Winslow, senior managing director and global head of capital markets and factor investing at CPPIB.

Green Bonds in Asia

Hundreds of billions could be raised over the next five years in green bonds by Asian entities, according to SWFI calculations. In June, the International Finance Corporation (IFC) and the Monetary Authority of Singapore (MAS) signed a Memorandum of Understanding (MOU), agreeing to work together to accelerate the growth of green bond markets in Asia. The MoU aims to promote internationally-recognized green bond standards and frameworks. The Hong Kong Monetary Authority (HKMA) revealed that between January 2018 and May 2018, the Hong Kong as a city issued HK$ 39 billion worth of green bonds. In May, the Bank of China raised a US$ 1 billion green bond issue. Swire Properties and Beijing Capital Group each raised US$ 500 million in green bonds.

Think Tanks Reveal Needs

Annual issuance of the environmentally friendly securities reached US$ 155 billion in 2017, a 78% increase over the year previous, and is expected to reach US$ 1 trillion by 2020, according to the Climate Bonds Initiative. The Climate Bonds Initiative is financially majority-backed by the Rockefeller Foundation, Bank of America, National Australia Bank (NAB), Bloomberg Philanthropies and the Swiss government.

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KIC to Manage a Portion of Korea Post Assets

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In late February, the Korea Investment Corporation (KIC) inked an agreement to manage some of Korea Post’s global assets. KIC also seeks to provide investment training and research to Korea Post.

“As part of effort for Korea Post to allocate part of global investment assets to KIC, both agencies agreed to discuss details during the first half of this year, including the manner in which joint investment and asset allocation will be made,” KIC said in a statement.

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Singaporean Sovereign Wealth Capital Participates in DoorDash Series F Round

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San Francisco-based DoorDash Inc., a food delivery company, raised US$ 400 million in a Series F investment round. The investment round was led by Singapore’s Temasek Holdings and San Francisco-based Dragoneer Investment Group, LLC. Post-raise, DoorDash has raised US$ 1.4 billion in equity capital. This gives DoorDash a post-money valuation of US$ 7.1 billion. DoorDash competes against publicly-traded company Grubhub, Postmates, and UberEats, a service of Uber Technologies.

Other investors in the Series F round include SoftBank Vision Fund (managed by SoftBank Group), DST Global, Coatue Management, Singapore’s GIC Private Limited, Sequoia Capital, and Y Combinator.

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CPPIB and Sterling Partners Exit Livingston International

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Canada Pension Plan Investment Board (CPPIB) and U.S. private equity firm Sterling Partners are exiting their investment in Livingston International Inc., an international trade-services firm based in Toronto, Ontario, which specializes in customs brokerage, freight forwarding, and trade consulting. Livingston International is Canada’s largest customs broker and third-largest entry filer in the United States.

U.S. private equity firm Platinum Equity is buying Livingston International from CPPIB and Sterling Partners. Platinum Equity is a private equity firm founded by Tom Gores in 1995.

Livingston International was founded in 1945 by Gerry Livingston. In 2002, the company went public after backing from CAI Capital Partners. In 2010, CPPIB and Sterling Partners acquired the company for US$ 324 million. On May 8, 2012, Livingston International acquired New Orleans, Louisiana-based M.G. Maher & Company, Inc. and MCLX, Inc. Maher is an international freight forwarder, customs broker and logistics provider. In 2013, the owners of Livingston International refinanced debt raising US$ 555 million in senior secured credit facilities.

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