Deals

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.

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.