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GC Podcast: Sustainable finance — pushing the limits

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The demand for sustainable finance has exploded in the last few years. It is a hotbed of innovation as debt issuers look to make the most of investors’ desire to fund a better world. This week, GlobalCapital considers one of the most recent innovations: sustainability-linked debt.

The format is simple; a borrower pays more or less on its debt depending on whether it meets certain sustainability targets. But two deals this week highlighted some of the controversies this nascent market faces over its credibility.

Listen to the podcast here.

 

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EU bonds: one step closer to being Europe’s safe asset?

From 01 Jul 2021 The EU has made a quick start to funding its €800bn Next Generation EU programme in the bond market, with €25bn done in two of three syndications scheduled for June and July. But will the huge level of borrowing turn out to be as temporary as promised?

The EU will be printing an awful lot of bonds over the next few years, way beyond what a supranational would usually issue and bringing the sort of volume more typical of a sovereign borrower. 

It is only supposed to be a temporary measure to fund the pandemic recovery but now people are wondering if the EU shouldn’t issue of this sort of volume permanently, becoming the eurozone’s safe asset in the process. This week GlobalCapital discusses whether that is likely, necessary, or desirable and what the implications might be.

Listen to the podcast here

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