Featured

Yorkshire builds societal purpose into funding framework

A €500m seven year covered bond last month was the latest addition to social bond issuance inaugurated by Yorkshire Building Society (YBS) in May under the first such framework for a UK builder. Duncan Asker, director of treasury, and Richard Driver, head of financial structuring, at YBS told Sustainabonds’ Neil Day how the issuance carries the financial institutions’ “real help with real life” mantra into its funding.

Deals

Green covered debut sees Eika succeed in uncertain market

Eika Boligkreditt sold its first green bond on Tuesday, with the green element and a defensive approach contributing to a successful outcome in an uncertain market, according to an official at the Norwegian issuer, whose framework tackles taxonomy alignment and reflects green progress in the Eika Alliance.

Green

Energy efficiency-default risk correlation bolsters EEMI

A building’s energy efficiency has a negative and highly significant correlation with the risk of mortgage default, according to an Energy Efficient Mortgage Initiative (EEMI) study, which it says is the fullest analysis of the subject and a timely finding as the European Commission sets out its post-Covid-19 agenda.

Green

PKO BH builds on leading green position

In June 2019, PKO Bank Hipoteczny issued the first green covered bond from central and eastern Europe, and has since followed up with a second deal as well as the launch of an energy efficient residential mortgage offer. Five years on from its creation, CEO Paulina Strugała tells Sustainabonds about the latest developments related to its green covered bond activity.

Deals

Nykredit to issue green covered bonds in Danish, Swedish markets

Europe’s largest mortgage covered bond issuer, Nykredit Realkredit, is to join compatriot Realkredit Danmark in issuing green covered bonds, with the Danish model meaning that cheaper financing costs will be passed on directly to end-borrowers, among whom Swedish clients are “leading the pack”, the issuer’s IR head told Sustainabonds.