Banks

Bank of Nova Scotia ended a six year absence from the senior segment of the Swiss market to print a 10 year bond on Monday.

Uzbekistan re-entered the international bond markets on Monday for its third ever issue. The dual currency bond it was marketing aimed at drawing in the widest possible investor base, market participants said

London’s booming investment trusts market is showing no sign of slowing down, with three new deals pricing on Monday including space-tech vehicle Seraphim Space Investment Trust.

Arguably the most important sustainable finance innovation since the development of green bonds, sustainability-linked bonds have picked up notable traction in the year since the launch of the Sustainability-Linked Bond Principles. But while the instrument provides the holistic issuer-level engagement that many investors are seeking, in contrast to use of proceeds bonds, questions remain over both the credibility of KPIs and applicability to financial and sovereign credits.

Indonesian e-commerce company Bukalapak has hit the market with a jumbo IPO of up to Rph21.9tr ($1.5bn), on track to be the country’s largest listing.

Commodities company Trafigura’s Singapore arm is making its annual return to the Asian loan market, this time opting for a sustainability-linked facility.

Hong Kong-based financial leasing company Far East Horizon raised Rmb500m ($77m) from a two year Panda bond in the domestic Chinese market at the end of last week.

Originally a self-regulated sphere in which voluntary principles underpinned activity, ESG debt is attracting increasing regulatory focus — especially in Europe, where the EU’s ambitious Action Plan on Sustainable Finance is creating a demanding new framework around the market. What does this imply for issuers and investors? And are other regions in step with European developments? Clifford Chance and Latham & Watkins clarify the state of play.

Pivotal players in capital markets through their credit ratings, rating agencies are responding to investors’ increasing focus on environmental, social and governance (ESG) factors by providing ESG ratings too. But how do the two products differ and is there room for both, given ESG’s growing influence on credit risk? Experts from Moody’s ESG Solutions explain their approach.

In the past two years, environmental, social and governance matters, especially climate change, have gone from a fringe issue in capital markets to — almost — the main issue. Banks, investors, companies and governments have shouldered the responsibility of helping move the economy to net zero emissions in 30 years. That duty has joined the fiduciary obligation to make money for customers and shareholders that have been the markets’ main motivation in the past.

With a host of landmark transactions that include the world’s first sustainability-linked loan and the world’s first green digital Schuldschein, Verbund stands out as a pioneering issuer of ESG debt. Most recently, it broke significant new ground by combining normally separate green use of bond proceeds with a sustainability-linked coupon.

Although the biggest issuers of all — the US, Japan and China — remain outside the market for now, sovereign ESG debt has gained real momentum in the past 18 months, as a growing number of developed and emerging market issuers have endorsed green, social and sustainable bonds as part of their financing options. As a result, investors are seizing new opportunities to engage on national pandemic recovery and net zero strategies and targets.