SR-Boligkreditt inaugurated a green bond framework with the first negative-yielding euro benchmark covered bond from the Nordics on Tuesday, while Sparebanken Sør Boligkreditt is set to follow with a green covered bond debut off the first Norwegian framework also targeting social goals.
SpareBank 1 SMN inaugurated its green bond framework on 4 September with a EUR500m seven year senior preferred issue soon after it received an improved ESG rating from Sustainalytics, with its fisheries-related element welcomed by the Marine Stewardship Council.
Rabobank recently aligned its green bond framework with the latest draft of the proposed EU Green Bond Standard and Sustainabonds spoke to Maarten Biermans, head of sustainable capital markets at the Dutch bank, about the issuer’s support for the initiative, notably the “do no significant harm” principle.
Standard Chartered attracted over EUR3.4bn of orders for an inaugural sustainability bond on 25 June, building on a broader green and sustainable product framework to offer investors an uncommon opportunity to support the UN SDGs in the range of emerging markets the bank operates in.
Landesbank Baden-Württemberg issued its third green bond in just over two months on Wednesday, a EUR500m no-grow seven year senior non-preferred issue priced flat to where the German bank sold a EUR750m five year SNP transaction in mid-May.
Société Générale SFH issued the first French green covered bond last Monday, a EUR1bn 10 year issue that attracted over EUR2.5bn of orders, with proceeds earmarked for refinancing mortgages against low carbon residential buildings in the fifth “positive impact” bond from the group.
Berlin Hyp sold over half a EUR500m eight year green Pfandbrief to investors classified as green at the tightest spread of any euro benchmark covered bond this year on Wednesday, in what head of funding and IR Bodo Winkler hailed as an amazing result, even if yield moves made pricing “a little bizarre”.
Overall ESG strategies are as important to investors as the specifics of green bonds, as they seek to avoid green-washing and encourage brown issuers to make the transition to sustainability.
PKO Bank Hipoteczny (PKO BH) launched the first green covered bond from Poland and central and eastern Europe yesterday (Wednesday), a PLN250m (EUR58m) five year FRN with proceeds earmarked for financing energy efficient residential mortgages.
Nykredit Realkredit issued the second and largest green Danish covered bond yet last week, a SEK4.1bn (EUR383m, DKK2.87bn) three year FRN that achieved a 3bp saving versus the issuer’s conventional issuance which will be passed on to its borrowers.