Sustainability-linked bonds will open the door for “a whole new group” of issuers to join the sustainable fixed income market, according to coordinators of the respective working group, who on Monday outlined the rationale for “versatile” Sustainability-Linked Bond Principles.
Strong demand for a Covid-19-focused social bond from Crédit Mutuel Arkéa on Thursday allowed the French issuer to price its biggest senior non-preferred (SNP) transaction, a €750m nine year non-call eight deal whose proceeds are earmarked for supporting healthcare and SME development.
Deutsche Bank entered the green bond market on Tuesday as part of a push towards a recently-announced €200bn sustainability target, with a €500m six year non-call five senior preferred deal that achieved a €4.5bn-plus book and pricing inside fair value, global head of issuance and securitisation Jonathan Blake told Sustainabonds.
Norway’s SpareBank 1 Boligkreditt sold the largest ever green covered bond new issue in the Swedish market yesterday (Tuesday), a SEK7.5bn five year FRN made feasible by the QE-inspired strength of the krona market and the attraction of the green element, which contributed to a SEK9bn-plus order book.
Interest in the energy transition purpose of a €1.25bn 10 year debut green covered bond helped France’s BPCE achieve the biggest book on a euro benchmark covered bond since 2013 on Tuesday, according to an official at the issuer, allowing it to achieve “more normalised” pricing amid the crisis-hit market backdrop.
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.
Caffil took advantage of an existing social bond framework to be the first-mover in Covid-19-related covered bonds on Tuesday, tapping into improving conditions to raise €1bn for lending to public hospitals ahead of an anticipated broader rise in French public spending and SFIL group funding.
Berlin Hyp has opened up its green bond issuance to private placements ahead of the fifth anniversary of the launch of its pioneering green Pfandbrief today (Monday), with the German issuer having hit one year ahead of schedule a target of 20% of its lending being green by the end of 2020.
Investors have rallied to a wave of social-style bond issuance from supranationals aligned with the issuers’ role in the fight against the impact of the Covid-19 pandemic, providing at the same time a tonic for ailing fixed income markets. Neil Day explores the trend and the potential for such bonds.
The Nordic Investment Bank (NIB) last week inaugurated the first dedicated Covid-19 use-of-proceeds framework with a €1bn three year “Response Bond”, moving quickly to support the alleviation of societal and economic impacts of the crisis. Head of funding and IR Jens Hellerup discussed the rapid launch of the quasi-social bond with Sustainabonds.