A pre-summer bout of green, social and sustainability issuance from Germany’s federal states highlighted their burgeoning activity in the market as well as the environmental and social tasks they face. Representatives of the five Länder to have issued GSS bonds spoke to Sustainabonds’ Neil Day about their rationale for entering the market, what make their frameworks distinctive, and how their issuance is evolving in light of market and regulatory developments.
The expansion of green, social and sustainable or sustainability-linked formats into short term instruments has the potential to boost overall volumes and impact, and pioneers have already begun testing appetite in the commercial paper market. However, the sector’s intrinsic characteristics raise questions over how to best exploit its potential. In this special Sustainabonds report, sponsored by ABN AMRO, Neil Day explores experience to date and asks what could catalyse growth.
Issuers facing problems sourcing green, social or sustainable assets or aligning them with short term debt issuance could instead turn to ESG-linked commercial paper as an efficient alternative, according to ABN AMRO’s Dick Ligthart. Meanwhile, one issuer who follows the use-of-proceeds approach acknowledges that in the money market sustainable investors might prefer a more holistic ESG rating-based approach, which relies more on the overall ESG credentials of the company given […]
As the first European bank to have had its decarbonisation trajectory SBTi-validated and other pioneering steps, La Banque Postale can credibly claim to ’walk the talk’.
Caffil sold the first bond from a new and enlarged group green, social and sustainability framework on Tuesday, a €750m five year green transaction that benefited from the scarcity of both its maturity and ESG nature, according to SFIL’s Gonzague Veillas.
Public sector issuers are at the forefront of green and social bond markets as they seek to support society in transitioning, justly, to a sustainable future. Demand is buoyant, supported by regulatory developments, but challenges remain, notably in determining appropriate standards on the social side. Sustainabonds gathered leading players to tackle the key issues facing the sector in a roundtable discussion finalised in mid-February.
Issuers lacking projects appropriate to use-of-proceeds green bonds but with clear sustainability targets and transition strategies are increasingly finding sustainability-linked bonds (SLBs) a viable alternative for reflecting their ESG ambitions in the capital markets. In this special report, sponsored by ABN AMRO, Sustainabonds’ Neil Day explores the surge in issuance and finds out what issuers need to be doing to win over investors.
Korea’s Hana Bank aims to build on its sustainable issuance in a variety of formats and currencies to reach KRW 25 trillion (€18.6bn) by 2030. Yoo-Na Ha, senior manager of ESG planning section, Hana Bank, spoke to Sustainabonds’ Neil Day about how green and social bonds reflect the group’s evolving sustainability targets and wider developments in Korean society.
The only Fitch-rated covered bonds for which any ESG factor is positively credit-relevant are those of Aegon Bank and Panama’s Banco La Hipotecaria, according to the rating agency, which is disclosing “ESG relevancy scores” for credit ratings in a bid to increase transparency but found little impact across the asset class.
Asset growth, EU sustainable finance initiatives and pricing benefits could all help green bond supply rise to meet the growing demands of investors, according to speakers at an LBBW conference on 1 March, where a broadening of issuance, particularly into social bonds, was called for.