Engagement from fixed income investors with bond issuers remains relatively uncommon, according to the PRI, but a series of studies launched last week shows it can deliver benefits for both sides, with Pimco highlighting the particular relevance of ESG analyses when investing in banks.
Moody’s is allocating more resources to its Green Bond Assessment team as part of a broader expansion of its ESG capabilities, the rating agency announced on Wednesday, after it highlighted the growing prominence of ESG analysis amongst mainstream investors and policymakers.
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.
Companies in the banking and broader finance sector foresee the demands of customers increasingly driving their sustainability measures in the future, according to oekom survey findings exclusively shared with Sustainabonds, with positive sustainability ratings of even more importance to such institutions than others.
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.
A market initiative to produce a standardised pan-European protocol and portal for financial data on energy efficient mortgages, EeDaPP, has won support and funding from the European Commission, ahead of the forthcoming pilot phase of the Energy efficient Mortgages Action Plan (EeMAP).
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.
Berlin Hyp issued a EUR500m 10 year senior green bond yesterday (Tuesday), thereby becoming the bank with the most green benchmarks outstanding, and for the first time it sold the majority of a benchmark issue to non-German accounts, with its green commitment cited as a factor in investors’ support.
Buyers of green bonds are potentially receiving climate-related credit protection for free, Bank of England governor Mark Carney highlighted at the World Bank/IMF Annual Meetings yesterday (Saturday), but he said prudential regulation should not be used as a “backdoor” for climate policy.
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.
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