Caffil sold the first French covered bond in either green or social format on Tuesday, a EUR1bn eight year healthcare deal that drew over EUR2.6bn of orders and marginally outperformed the most recent comparable supply, according to a lead, while Moody’s said the ESG move is credit positive.
Caffil is roadshowing a social bond that is set to be the first social or green covered bond from France, with the proceeds refinancing loans to public hospitals, and the group plans to follow up the debut with green covered bonds later this year and potentially social issuance from parent SFIL.
SBAB’s Swedish Covered Bond Corporation issued the largest Swedish krona green bond on Wednesday, a SEK6bn (EUR585m) covered bond backed by energy-efficient mortgages – the first in Sweden – that attracted over SEK14bn of orders and was priced inside SCBC’s secondary curve.
SCBC could launch the first Swedish covered bond backed by residential mortgages for energy efficient properties, after parent SBAB took a pro-active approach to offering clients a new green mortgage and added the product to its use of proceeds.
The Energy Efficient Mortgages (EEM) Initiative unveiled its definition of an energy efficient mortgage today (Monday), in response to European Commission and EeMAP pilot needs. Only last week a Pimco portfolio manager called for greater additionality from green covered bond issuers.
DZ Hyp will at the beginning of 2019 begin work on a green bond project, after the issuer on Tuesday launched its first benchmark Pfandbrief since being created from the merger of DG Hyp and WL Bank to become Germany’s biggest covered bond issuer.
MünchenerHyp became the first issuer to have sold both green and social covered bonds on Tuesday, with the launch of a EUR500m “Ecological ESG” deal that should be the first of annual issues, according to its head of debt IR, although plans for social bonds may take some time to come to fruition.
Four years after launching the first ever sustainable covered bond, MünchenerHyp is preparing to launch a benchmark Ecological ESG Pfandbrief, with a green retail loan it launched in 2015 enabling it to be the first German issuer to include residential mortgages in its use of proceeds.
Berlin Hyp achieved its highest ever foreign distribution with a EUR500m seven year green Pfandbrief on Friday, after having waited out an “awful” market on Thursday to then attract EUR950m of orders at a level reflecting the “new world”, according to Bodo Winkler, its head of funding and investor relations.
Deutsche Kreditbank has become the first German bank to sell both green and social bonds, with a EUR500m debut social public sector covered bond on Tuesday, whose status helped it evade the impact of a cut in ECB QE buying. Mortgage Pfandbriefe could in future be added to its ESG funding suite, according to DKB’s head of treasury.