Caffil looks set to become the first French issuer of a green or social covered bond, as it plans to this year issue a social bond backed by the public sector assets it refinances with an initial focus on healthcare, and to later enter the green bond market, officials at the issuer told Sustainabonds.
The use of renewable energy assets as covered bond collateral under a proposed Luxembourg framework would bring extra risks versus traditional collateral, according to Moody’s, but the rating agency highlights various mitigants and says the law is overall credit positive for funding such assets.
SpareBank 1 Boligkreditt is preparing to issue an inaugural, euro benchmark green covered bond – the first from outside Germany – targeting the growing SRI investor base and aiming to highlight and enhance its member banks’ commitment to sustainability, SpaBol’s Eivind Hegelstad told Sustainabonds.
A world-first green covered bond law has been proposed by Luxembourg’s ministry of finance, with the draft bill defining a new product to finance renewable energy infrastructure. The move is just the latest green finance initiative in the country – whose covered bond market has meanwhile been in decline.
A debut EUR500m green Pfandbrief for Deutsche Hypo went “perfectly” yesterday (Thursday), according to head of funding and investor relations Jürgen Klebe, who said the deal reflected green moves in the bank and helps prepare for a post-CBPP3 market, with annual issuance planned.
Deutsche Hypo will next month become only the second issuer of a green benchmark covered bond, after having today (Wednesday) announced a roadshow ahead of a debut backed by commercial real estate, in a boost to the sustainable covered bond segment, which has lagged other asset classes.
The European Green Securities Steering Committee – an industry-wide committee jointly convened by the Climate Bonds Initiative and the European Covered Bond Council, with the support of the UNEP Inquiry – mapped its priorities for the coming 12 months at an inaugural meeting last Thursday (29 June).
Kommunalkredit Austria expects most of its future covered bond issuance to be green or socially-orientated, according to an official at the bank, after it returned to the wholesale markets for the first time since its privatisation with an inaugural Eu300m social covered bond yesterday (Tuesday).
Caja Rural de Navarra intends to raise all new wholesale funding under a sustainability framework it inaugurated with a cédulas last November, according to its head of treasury, after the issuer sold its first senior unsecured deal under the framework and signed up to the Label.
Kommunalkredit Austria is preparing to return to the covered bond market after a three year absence with a social public sector covered bond, announcing its move the same day Social Bond Principles were unveiled by ICMA as the sector reaches what one banker said is a tipping point.