Berlin Hyp took what could be a last chance to secure prevailing attractive funding levels with a EUR500m 10 year green senior unsecured bond on Tuesday, but an allocation of just 20% to SRI accounts disappointed, as the deal’s maturity and spread wasn’t for all in a difficult market.
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 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.
Barclays became the first UK bank to issue a green bond yesterday (Monday), selling a EUR500m six year non-call five HoldCo issue flat to fair value in a strong credit market, shortly after the UK government established a green finance taskforce of which the issuer is a member.
Australia’s Westpac Banking Corporation will on Thursday begin a roadshow ahead of a planned debut euro green bond, while compatriot QBE will follow up its first green bond from the insurance sector with a gender equality US dollar AT1 deal.
Swedbank yesterday (Monday) achieved what is believed to be the tightest spread of any five year senior unsecured euro benchmark since the financial crisis with its first green bond, a EUR500m deal that a Swedbank official said had already stimulated enquiries for green financing from corporates.
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.
Sumitomo Mitsui Financial Group became the first Japanese issuer to sell a green bond in accordance with Ministry of the Environment guidelines on 4 October, and SMFG officials said the move highlights a growing focus on the asset class in Japan, while being a green TLAC/MREL euro first.
Mizuho Financial Group issued its first green bond on Tuesday, a EUR500m seven year senior bond that is its only outstanding benchmark in euros, and a spokesperson for the Japanese bank told Sustainabonds that the green euro helps diversify its issuance currencies and investor base.
Sumitomo Mitsui Financial Group (SMFG) sold the first green HoldCo transaction in euros on Wednesday, a EUR500m seven year fixed rate trade that attracted over EUR1.6bn of demand, pre-reconciliation, to achieve tight pricing, while Japanese peer Mizuho is due with a senior trade after a roadshow ending today (Friday).