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.
A debut EUR1bn green bond for Crédit Agricole SA attracted over EUR1.5bn of demand on Wednesday, and a syndicate official at the French bank argued that, by achieving a lower new issue premium than conventional comparables in challenging markets, the senior preferred deal offered support for the existence of a “greenium”.
BNP Paribas “pushed all the right buttons” with the first green senior non-preferred bond on Tuesday, a EUR500m six year deal that attracted some EUR1.1bn of orders, offering an in-demand maturity and ultimately pricing with what was deemed to be an impressively small premium.
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.
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