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Green Debt Market Faces a Rare Default

  • Energy Storage fails to wire funds for January coupon payments
  • Bonds sold by Sustainable Capital Plc, part of Bedford Row

An Australian company that promised to penetrate the $662 billion market for clean power storage by the first half of this year is struggling to drum up $1 million to pay interest on two green bonds. If it doesn’t find the cash by the end of next week, it’ll be a rare default in the green bond market. 

Queensland-based Energy Storage Pty Ltd failed to send funds to an issuing entity owned by London-based bond originator Bedford Row Capital when coupons were due on Jan. 6, according to a statement Tuesday. The company has now 14 days to pay them before default. Energy Storage, which is set to launch onsite clean power storage by the first half of 2022, didn’t respond to a request for comment from Bloomberg News.