SCBC could launch the first Swedish covered bond backed by residential mortgages for energy efficient properties, after parent SBAB took a pro-active approach to offering clients a new green mortgage and added the product to its use of proceeds.
Moody’s has warned that the development of energy efficient mortgages, and increasing momentum in the clean energy transition that this reflects, will hit the value of buildings that do not meet new minimum requirements, as well as securitisations and cover pools exposed to such collateral.
Italy’s UBI Banca is holding a non-deal roadshow for a new sustainable bond framework next week, with Norway’s DNB also planning a new, non-covered green bond programme for 2019 and Austria’s RLB Oberösterreich considering such issuance.
The Energy Efficient Mortgages (EEM) Initiative unveiled its definition of an energy efficient mortgage today (Monday), in response to European Commission and EeMAP pilot needs. Only last week a Pimco portfolio manager called for greater additionality from green covered bond issuers.
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”.
ING set green bank bond records in euros and notably US dollars yesterday (Thursday) in its first green senior HoldCo transaction, a EUR2.6bn equivalent deal that the issuer expects to kick off more regular green bond issuance after a three year gap since its debut.
DZ Hyp will at the beginning of 2019 begin work on a green bond project, after the issuer on Tuesday launched its first benchmark Pfandbrief since being created from the merger of DG Hyp and WL Bank to become Germany’s biggest covered bond issuer.
OP Corporate Bank will begin roadshowing a debut green bond from Finland’s OP Financial Group today (Monday), a senior unsecured euro benchmark, and its head of group funding and IR told Sustainabonds that, with OP being a cooperative, ESG is interwoven into the fabric of the group.
MünchenerHyp became the first issuer to have sold both green and social covered bonds on Tuesday, with the launch of a EUR500m “Ecological ESG” deal that should be the first of annual issues, according to its head of debt IR, although plans for social bonds may take some time to come to fruition.
Korea Housing Finance Corporation issued the first green or social covered bond from Asia and the first Korean euro covered bond on Wednesday, a EUR500m no-grow five year social issue that attracted EUR1.5bn of demand achieved the issuer’s goal of diversifying into European and SRI investors.