Deals

Landesbank Baden-Württemberg reached an unusually broad, international investor base with its inaugural green Pfandbrief on Monday, a EUR500m five year benchmark that received an “overwhelming” response, generating pricing power, according to the German issuer, which is also working on a social programme.

LBBW is set to issue its first green Pfandbrief in the coming days in a move partly aimed at attracting sustainable investors into covered bonds with a tapering and end to the ECB’s asset purchases on the horizon following announcements yesterday (Thursday) afternoon from the central bank.

Norway’s DNB Boligkreditt issued the biggest green bond from a European bank yesterday (Tuesday), a EUR1.5bn green covered bond debut that provided the clearest evidence yet of a possible “greenium” in the asset class. Sweden’s Handelsbanken today unveiled a new “dark green” framework.

Obvion Mortgages priced its third green residential mortgage-backed securities (RMBS) issue flat to a post-crisis Dutch RMBS tight on 19 May, and its head of balance sheet management and funding cited its green nature as helping a EUR550m senior tranche achieve the tight pricing against a widening backdrop.

DNB Boligkreditt has established a green covered bond framework based on residential mortgages for the most energy efficient properties in Norway, after compatriot SpareBank 1 Boligkreditt tightened its criteria on the basis of feedback during its Climate Bonds Initiative certification process.

BBVA issued the largest green bond from a Eurozone bank today (Thursday), a EUR1bn seven year senior non-preferred deal that inaugurated a new SDG-aligned framework and attracted more than EUR2.5bn of demand despite coming relatively tight in a recovering market.

Caja Rural de Navarra achieved the highest oversubscription ratio of any euro benchmark covered bond this year with a EUR500m seven year sustainable cédulas on Wednesday, boosted by positive sentiment towards Spain, while the issuer highlighted EeMAP and SDG-inspired enhancements to its programme.

Landshypotek Bank is preparing to issue the first green covered bond from Sweden, a Swedish krona debut set to be backed by and finance forestry loans, thereby targeting “a very important part” of tackling CO2 emissions, its chief sustainability officer told Sustainabonds.