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

Climate_protest_Alamy_575x375_080421
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 ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial