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.
Raiffeisen Bank International (RBI) is preparing to issue an inaugural green senior unsecured benchmark, embarking on a European roadshow today (Friday), in the latest step of a sustainability strategy that, it says, is based on the principles of group’s 19th century namesake.
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.