Deals

SBAB served the Swedish environmental cause and its local investor base with a SEK1.75bn (EUR183m) five year green bond on Wednesday, according to the bank’s head of funding, while the senior unsecured deal was seen coming some 6bp through its curve.

Hypo Vorarlberg reflected its state’s environmental ambitions with the first Austrian green bank bond on 12 September, a EUR300m five year deal that was also the first senior unsecured issue from the country since the Heta crisis, with its green status deemed a factor in smooth execution.

Berlin Hyp is planning its second senior green bond, a long dated euro issue expected after a roadshow starting Friday, which would make it the most prolific issuer of green benchmarks. The mandate comes after oekom upgraded the bank’s sustainability corporate rating to put it top of its peer group.

Deutsche Kreditbank head of treasury Thomas Pönisch attributed impressive pricing on its second green bond on Tuesday to the “green factor”, while the German lender extended its commitment to the market with a longer oekom agreement and a larger pool that could see a private placement follow.

Green bonds do not yet offer cheaper funding than conventional comparables, according to a report from the Climate Bonds Initiative (CBI) and the International Finance Corporation (IFC), even if momentum reflected in moves from IPTs and secondary performance – notably on an Apple bond – suggests a positive future.

Garanti Bank is placing a TL305m (Eu75m) covered bond with the European Bank for Reconstruction & Development (EBRD), the Turkish bank announced today (Thursday), with a commitment to use the proceeds to lend green mortgages, in a follow-up to a similar bond placed with the IFC.

DBS launched its debut green bond and the first such international issue from Singapore yesterday (Tuesday), a $500m (EUR429m, SGD681m) five year floating rate note that the issuer said delivered “very compelling” pricing after investors placed some $900m of orders for the paper.

Kommunalkredit Austria expects most of its future covered bond issuance to be green or socially-orientated, according to an official at the bank, after it returned to the wholesale markets for the first time since its privatisation with an inaugural Eu300m social covered bond yesterday (Tuesday).