Four years after launching the first ever sustainable covered bond, MünchenerHyp is preparing to launch a benchmark Ecological ESG Pfandbrief, with a green retail loan it launched in 2015 enabling it to be the first German issuer to include residential mortgages in its use of proceeds.
Commerzbank attracted as much as EUR1.25bn of orders from over 100 investors to its first green bond yesterday (Tuesday), a EUR500m five year senior non-preferred benchmark with proceeds earmarked for renewable energy financing.
Berlin Hyp achieved its highest ever foreign distribution with a EUR500m seven year green Pfandbrief on Friday, after having waited out an “awful” market on Thursday to then attract EUR950m of orders at a level reflecting the “new world”, according to Bodo Winkler, its head of funding and investor relations.
DZ Bank sold its first green bond on 25 September, a EUR250m five year deal with proceeds earmarked for German onshore windfarms that marked a rare appearance in the public markets for the German issuer in senior format, and which is the first green bond from a bank to have an S&P Green Evaluation.
Deutsche Kreditbank has become the first German bank to sell both green and social bonds, with a EUR500m debut social public sector covered bond on Tuesday, whose status helped it evade the impact of a cut in ECB QE buying. Mortgage Pfandbriefe could in future be added to its ESG funding suite, according to DKB’s head of treasury.
Korea Housing Finance Corporation (KHFC) will next week begin marketing an inaugural social covered bond – the proceeds of which will be used to support affordable housing – which will be the first sustainable covered bond from Asia. Deutsche Kreditbank is meanwhile set to sell a social debut tomorrow (Tuesday).
Deutsche Kreditbank (DKB) is preparing to issue an inaugural social covered bond, the leading green bond issuer having yesterday (Wednesday) announced a roadshow for a EUR500m issue backed by loans to public sector entities, which will be its first benchmark covered bond in three years.
Deutsche Hypo sold a EUR500m green Pfandbrief issue last Monday, its second such benchmark, and officials at the issuer described the deal’s “dynamic” book as being a positive statement of green investor’s trust.
Handelsbanken and Raiffeisen Bank International sold inaugural EUR500m green senior bonds this week that benefitted from price and execution certainty, respectively, thanks to their greenness boosting demand amid choppy conditions, according to bankers at and away from the leads.
KBC joined the green bond market with a more than thrice-subscribed EUR500m debut on Wednesday, to give green financing power to its clients, according to a KBC official. The senior HoldCo deal was also priced with a substantially smaller premium than recent conventional supply despite markets having been choppy.