Transition bond market heats up after year out in the cold

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By Mike Turner
03 Dec 2020

Sustainability-linked bonds (SLBs) have hogged much of the limelight in the socially responsible investment markets this year. But transition bonds, which had fallen out of favour for some time, have demonstrated there is clear demand for the product, following a strong deal for Snam this week and guidelines due for release in the coming days, writes Mike Turner.

Snam, the Italian gas network company, reinvigorated the transition bond market this week, when it did better than many expected to sell a €600m — increased from €500m — 0% December 2028 transition bond inside fair value at 38bp over mid-swaps.

“It exceeded expectations,” said a lead manager. “We thought ...

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