A debut EUR500m green Pfandbrief for Deutsche Hypo went “perfectly” yesterday (Thursday), according to head of funding and investor relations Jürgen Klebe, who said the deal reflected green moves in the bank and helps prepare for a post-CBPP3 market, with annual issuance planned.
HSBC Holdings inaugurated a new Sustainable Development Goal (SDG) bond framework on Wednesday that aligns with seven of the UN targets, selling a $1bn six year non-call five HoldCo deal.
Westpac sold its first offshore Climate Bond yesterday (Thursday), a EUR500m seven year senior unsecured deal, and its green status was deemed to have aided pricing in a weaker market and versus recent comparable Australian supply.
QBE issued the first capital instrument from a financial institution to take the form of a social bond on 9 November, a US$400m Additional Tier 1 gender equality bond that attracted some US$9.5bn of orders.
QBE put gender equality centre stage when it sold the first capital instrument from a financial institution to be in social bond format on 9 November. Here, QBE group treasurer Paul Byrne discusses the inspiration for the landmark and its execution.
The European Commission launched a public consultation yesterday (Monday) on how ESG factors could be integrated into the fiduciary duties of asset managers and institutional investors, as Valdis Dombrovskis spoke of the importance of private capital in achieving climate targets at COP23.
Barclays became the first UK bank to issue a green bond yesterday (Monday), selling a EUR500m six year non-call five HoldCo issue flat to fair value in a strong credit market, shortly after the UK government established a green finance taskforce of which the issuer is a member.
Australia’s Westpac Banking Corporation will on Thursday begin a roadshow ahead of a planned debut euro green bond, while compatriot QBE will follow up its first green bond from the insurance sector with a gender equality US dollar AT1 deal.
Engagement from fixed income investors with bond issuers remains relatively uncommon, according to the PRI, but a series of studies launched last week shows it can deliver benefits for both sides, with Pimco highlighting the particular relevance of ESG analyses when investing in banks.
Moody’s is allocating more resources to its Green Bond Assessment team as part of a broader expansion of its ESG capabilities, the rating agency announced on Wednesday, after it highlighted the growing prominence of ESG analysis amongst mainstream investors and policymakers.