Public sector issuers are at the forefront of green and social bond markets as they seek to support society in transitioning, justly, to a sustainable future. Demand is buoyant, supported by regulatory developments, but challenges remain, notably in determining appropriate standards on the social side. Sustainabonds gathered leading players to tackle the key issues facing the sector in a roundtable discussion finalised in mid-February.
Loans to local government bodies large and small are behind SFIL’s green bond issuance, and the French group anticipates complementing this with social lending, according to CEO Philippe Mills and colleagues.
Issuers lacking projects appropriate to use-of-proceeds green bonds but with clear sustainability targets and transition strategies are increasingly finding sustainability-linked bonds (SLBs) a viable alternative for reflecting their ESG ambitions in the capital markets. In this special report, sponsored by ABN AMRO, Sustainabonds’ Neil Day explores the surge in issuance and finds out what issuers need to be doing to win over investors.
Nederlandse Gasunie in October launched the first sustainability-linked bond (SLB) from the European gas transmission sector, a €300m 15 year deal with methane and Scope 1 and 2 emissions reduction targets. Here, Gea Paas Broekman and Loek Caris at Gasunie, and Dick Ligthart and Ton Roeten at sustainability structuring advisor ABN AMRO, discuss how the instrument furthers the Dutch company’s sustainability objectives and transition into an energy infrastructure company.