Deals

DKB commits to sustainable-only issuance after negative GBS first

Deutsche Kreditbank (DKB) will in future only tap the bond markets in green and social format, after having sold the first deal compliant with the latest draft of the EU Taxonomy and Green Bond Standard, a €500m five year that is also the first senior preferred bank bond issued at a negative yield.

Green

EEM Label ready to go, could offer ‘bridge’ to Taxonomy

The Energy Efficient Mortgage Label will be launched on 12 February, offering a platform for lenders to provide data and transparency around green products and providing a “bridge” towards a greener market and potentially higher Taxonomy standards, according to the EMF-ECBC’s Luca Bertalot.

Social

Caffil seeks private placement ‘dynamism’ in social bond first

Caffil is posting levels for social bonds in private placement format, in what is understood to be a first for a covered bond issuer, with its funding team citing investor interest in such product, which it hopes will add “dynamism” to its MTN issuance at the long end of the curve.

Green

EPC A label-only Taxonomy plan threatens green buildings issuance

Draft EU Taxonomy standards threatens to stymie green bond issuance to finance green buildings by limiting eligibility to those with EPC A labels, with one pioneering covered bond issuer floating a switch to KPI-linked bonds, although there are suggestions the Commission may be open to compromise.

ABN AMRO

Green

Energy efficiency-default risk correlation bolsters EEMI

A building’s energy efficiency has a negative and highly significant correlation with the risk of mortgage default, according to an Energy Efficient Mortgage Initiative (EEMI) study, which it says is the fullest analysis of the subject and a timely finding as the European Commission sets out its post-Covid-19 agenda.

Deals

Berlin Hyp 10 hits high in wake of new green ambitions

Berlin Hyp achieved the highest bid-to-cover ratio of any German Pfandbrief this year on Tuesday when it reopened the post-summer covered bond market with its 10th benchmark green bond, a €500m 10 year deal launched in the wake of “ambitious” new sustainability targets, and followed it up with a Swiss franc debut on Thursday.

Deals

Strong demand for Arkéa Covid-19 bond helps it to SNP high

Strong demand for a Covid-19-focused social bond from Crédit Mutuel Arkéa on Thursday allowed the French issuer to price its biggest senior non-preferred (SNP) transaction, a €750m nine year non-call eight deal whose proceeds are earmarked for supporting healthcare and SME development.

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