Paragon of virtue: green sub debt arrives in UK

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By Tyler Davies
17 Mar 2021

Paragon Banking Group this week became the first UK lender to launch a subordinated bond in an ESG format. The bank was looking to replace its only outstanding tier two with a new green-labelled transaction.

Paragon opened books for the 10.5 year non-call 5.5 green tier two on Wednesday morning.

Lead managers Bank of America, Barclays and UBS set out with initial price thoughts in the 4.5% area, following two days of marketing calls with investors.

By lunchtime, the leads had welcomed £180m ...

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