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.
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.
Four years after launching the first ever sustainable covered bond, MünchenerHyp is preparing to launch a benchmark Ecological ESG Pfandbrief, with a green retail loan it launched in 2015 enabling it to be the first German issuer to include residential mortgages in its use of proceeds.
Berlin Hyp achieved its highest ever foreign distribution with a EUR500m seven year green Pfandbrief on Friday, after having waited out an “awful” market on Thursday to then attract EUR950m of orders at a level reflecting the “new world”, according to Bodo Winkler, its head of funding and investor relations.
Deutsche Kreditbank (DKB) is preparing to issue an inaugural social covered bond, the leading green bond issuer having yesterday (Wednesday) announced a roadshow for a EUR500m issue backed by loans to public sector entities, which will be its first benchmark covered bond in three years.
Deutsche Hypo sold a EUR500m green Pfandbrief issue last Monday, its second such benchmark, and officials at the issuer described the deal’s “dynamic” book as being a positive statement of green investor’s trust.
Landesbank Baden-Württemberg reached an unusually broad, international investor base with its inaugural green Pfandbrief on Monday, a EUR500m five year benchmark that received an “overwhelming” response, generating pricing power, according to the German issuer, which is also working on a social programme.
LBBW is set to issue its first green Pfandbrief in the coming days in a move partly aimed at attracting sustainable investors into covered bonds with a tapering and end to the ECB’s asset purchases on the horizon following announcements yesterday (Thursday) afternoon from the central bank.
Ahead of 150th birthday celebrations on 8 May marked by a gift of saplings to its home city, Berlin Hyp tightened its pioneering green bond framework and revealed an increasing positive environmental impact from the programme.
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.