Green

Interest in the energy transition purpose of a €1.25bn 10 year debut green covered bond helped France’s BPCE achieve the biggest book on a euro benchmark covered bond since 2013 on Tuesday, according to an official at the issuer, allowing it to achieve “more normalised” pricing amid the crisis-hit market backdrop.

In June 2019, PKO Bank Hipoteczny issued the first green covered bond from central and eastern Europe, and has since followed up with a second deal as well as the launch of an energy efficient residential mortgage offer. Five years on from its creation, CEO Paulina Strugała tells Sustainabonds about the latest developments related to its green covered bond activity.

Berlin Hyp has opened up its green bond issuance to private placements ahead of the fifth anniversary of the launch of its pioneering green Pfandbrief today (Monday), with the German issuer having hit one year ahead of schedule a target of 20% of its lending being green by the end of 2020.

Landesbank Baden-Württemberg (LBBW) issued the first green senior non-preferred sterling benchmark on 22 January, a £500m five year deal in which a maturing ESG UK investor base considered both LBBW’s green bond and issuer credentials, according to those involved in the deal.

NordLB Luxembourg Covered Bond Bank (NordLB CBB) attracted both ESG-focused and regular covered bond buyers to the first ever renewable energy covered bond last week, a €300m five year legislative deal that, the issuer told Sustainabonds, came surprisingly tight to its traditional issuance.

NordLB Luxembourg Covered Bond Bank is set to launch the first renewable energy covered bond in the coming fortnight, a €300m five year, and the issuer told Sustainabonds it is confident the uniquely green legislative product will prove a timely addition to the market.

Caffil attracted over €3bn of demand to the first ever green public sector covered bond on Tuesday, a €750m 10 year issue that Philippe Mills, CEO of Caffil parent SFIL, said is “close to the heart” of its mission, with green bonds complementing its social issuance.

Rabobank sold its first green senior non-preferred bond last week, a €750m seven year priced some 3bp through fair value, with the deal’s impressive outcome attributed largely to its green nature. The Dutch cooperative has also sought to make its transaction the first aligned with the latest draft of the EU Green Bond Standard.