covered bonds

Landshypotek Bank is preparing to issue the first green covered bond from Sweden, a Swedish krona debut set to be backed by and finance forestry loans, thereby targeting “a very important part” of tackling CO2 emissions, its chief sustainability officer told Sustainabonds.

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).