Covered bonds to be first step on FIG's climb up SLB mountain

By Bill Thornhill, Tyler Davies
08 Apr 2021

European banks face tough conceptual and regulatory barriers as they enter the market for sustainability-linked debt. But DCM bankers hope that they can find a simpler solution for issuers by focusing on covered bonds, write Tyler Davies and Bill Thornhill.

Banks have so far only sold bonds with a dedicated use of proceeds when trying to demonstrate their environmental, social and governance (ESG) credentials in the capital markets.

The practice is straightforward: borrowers commit to using the money they raise from investors to fund a pool of ...

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