The green and social covered bond markets have considerable potential for growth, according to panellists at an ICMA CBIC/The CBR conference, with a leading investor highlighting his appetite for more paper and “sticky green money” available, but the impact of QE and a lack of data is holding issuers back.
The EMF-ECBC launched a project to create an energy efficient mortgage today (Tuesday) that it said could pave the way for broader take-up of green covered bonds, after Berlin Hyp yesterday inaugurated a combined Pfandbrief and senior green programme with a Eu500m seven year unsecured deal.
Berlin Hyp sold the first green covered bond today (Monday), attracting almost Eu2bn of orders for a Eu500m seven year issue, with bankers suggesting the deal printed in line with where a conventional Pfandbrief would have priced while attracting new investors to the paper.
Six years after the germination of the idea, the first Green Pfandbrief is coming to fruition thanks to careful nurturing by Berlin Hyp and its partners. Here, they discuss the credentials and potential of an investment that promises to be sustainable in more than one sense of the word.
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