KfW hopes to ‘start a movement’ on ESG grades

KfW 2014
By Burhan Khadbai
07 Nov 2019

KfW made a simple but potentially significant step in the evolution of bond markets this week as it became the first borrower to highlight its environmental, social and governance (ESG) ratings in term sheets for a bond issue, from the mandate announcement to the final pricing details. SSA bankers and issuers have applauded the move and other public sector borrowers are looking to follow, writes Burhan Khadbai.

On the face of it, nothing seemed out of the ordinary. KfW hit screens on Monday afternoon to announce a tap of its May 2027 euro green bond. But looking at the mandate announcement you would instantly see something unusual.

As well as listing its triple-A credit ratings ...

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