BBVA brings Covid-19 bonds to European credit markets, others to follow

By David Freitas, Mike Turner
28 May 2020

BBVA surprised market participants by becoming the first bank to issue a Covid-19 response bond in Europe this week. There will be follow-on deals as the format catches on in credit markets — high grade corporates are looking to do deals too — but it is unlikely to be exploited as widely as it has been in the SSA market. David Freitas and Mike Turner report.

Inevitably for a social bond format, supranational and agency borrowers pioneered the first Covid-19 response bonds. It was also predictable that, as with other themed issuance, borrowers from other asset classes would follow suit. Bank of America was the first bank to sell such a bond, printing in ...

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