Novartis stirs debate with first social-linked step-up coupon bond
Sustainability-linked bonds took a full year to get going after Enel, the Italian power and gas company, introduced the structure in September 2019. But they are now gathering pace. This week Novartis, the Swiss pharmaceutical company, printed a deal, just a week after Suzano, the Brazilian pulp and paper group, had become the second issuer.
More issues are coming. Nomura has been mandated to lead the first issue from Japan, and other banks have told GlobalCapital they are working on deals.
Governments, as well as companies, have considered the structure.In the formats used so far, investors will receive a 25bp step-up in ...