Green covered bonds will be big

By Jon Hay
18 Sep 2014

Münchener Hypothekenbank’s €300m ESG Pfandbrief will be remembered as one of the most important milestones in the development of the socially responsible investment (SRI) bond market.

Like other SRI bonds, the deal is not raising finance for any ethical activity that was not happening anyway. It is a means of connecting investors’ ethical aspirations with those of the issuer.

By linking its bond issue to a specific part of its assets — loans to ...

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