Société Générale SFH issued the first French green covered bond last Monday, a EUR1bn 10 year issue that attracted over EUR2.5bn of orders, with proceeds earmarked for refinancing mortgages against low carbon residential buildings in the fifth “positive impact” bond from the group.
Berlin Hyp sold over half a EUR500m eight year green Pfandbrief to investors classified as green at the tightest spread of any euro benchmark covered bond this year on Wednesday, in what head of funding and IR Bodo Winkler hailed as an amazing result, even if yield moves made pricing “a little bizarre”.
Stakeholders have largely welcomed the release of long-awaited green EU taxonomy proposals, which attempt to lay down green criteria to support sustainable finance, but opinions were divided over the extent to which weaknesses in the first draft had been addressed.
PKO Bank Hipoteczny (PKO BH) launched the first green covered bond from Poland and central and eastern Europe yesterday (Wednesday), a PLN250m (EUR58m) five year FRN with proceeds earmarked for financing energy efficient residential mortgages.
Nykredit Realkredit issued the second and largest green Danish covered bond yet last week, a SEK4.1bn (EUR383m, DKK2.87bn) three year FRN that achieved a 3bp saving versus the issuer’s conventional issuance which will be passed on to its borrowers.
Landesbank Baden-Württemberg aims to build green benchmark curves, after having expanded and more than doubled its green bond portfolio, and wrapped up EUR750m senior and $750m covered bonds in the space of a week, the latter – the first dollar green covered bond – attracting unusually strong demand inside fair value.
Berlin Hyp has enhanced its green bond reporting by calculating carbon emission savings based on the specific energy mix of buildings in its green finance portfolio, in what is understood to be a first for a green bond issuer. The lender has meanwhile transferred its Green Pfandbrief brand to support the Association of German Pfandbrief Banks in promoting the product.
La Banque Postale inaugurated a green, social and sustainability bond framework last week and attracted twice as many investors to the EUR750m 10 year green senior non-preferred bond than its last conventional SNP. Issuance in social and covered bond formats is set to follow.
ABN AMRO priced its fourth green bond last Monday, a EUR750m no-grow seven year deal where green investors proved less price sensitive in a hot market, on the same day the Dutch State Treasury Agency announced plans for the Netherlands to issue the first triple-A green sovereign bond.
Europe’s largest mortgage covered bond issuer, Nykredit Realkredit, is to join compatriot Realkredit Danmark in issuing green covered bonds, with the Danish model meaning that cheaper financing costs will be passed on directly to end-borrowers, among whom Swedish clients are “leading the pack”, the issuer’s IR head told Sustainabonds.
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