Record low spreads on offer for ESG bank issues

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By Frank Jackman
03 Dec 2020

Two banks landed tight with environmental, social and governance (ESG) themed deals this week: Crédit Agricole settled at a record low on its social bond debut, while DZ Bank came even tighter with its first senior non-preferred green bond.

The strong imbalance between the demand and supply of ESG paper is driving spreads down to record lows

“Supply is extremely limited,” said a banker on the Crédit Agricole deal. “Some investors have ESG mandates to fulfil, creating a level of granularity in order books, and so ...

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