Banks

Two groups of UK MPs held an online meeting today to welcome and promote a report into how the banking sector can support a ‘just transition’ to a low carbon economy. The report’s recommendations included creating a National Investment Bank to replace the role played by the European Investment Bank and for the UK to issue a green Gilt.

The Swedish National Debt Office has selected the maturity range for its debut green bond and the banks that will lead the transaction, which will take place via syndication in August.

Carnival Corp, the largest cruise line in the world — badly stricken by the impact of coronavirus on its business — raised €425m and $775m of 5.5 year bonds on Wednesday, which will be subordinated to the $6.25bn of bank loans and senior secured bonds it issued in June and April respectively.

Copenhagen Infrastructure Partners, the Danish renewable energy investor, has signed a €380m green loan to finance a wind farm in Spain, as analysts say renewable energies are now cheaper for consumers than their fossil fuel counterparts in major markets.

Demand for Australia and New Zealand’s first syndications of their 2020-21 fiscal year was high on Tuesday, with both issuers printing their second largest ever deals.

India’s banking sector has long been in trouble. However, while a few banks can appeal to the equity capital markets to restore their capital levels — and their reputations — this won’t be easy or cheap.

Fitch played down fears about the impact of payment holidays on UK covered bond pools this week, arguing that high credit quality would offer a strong line of defence against defaults.

Investors have been given their first taste of how regulatory relief could bolster bank capital levels amid Covid-19, after Barclays told the market this week to expect a drastic improvement in its common equity tier one (CET1) ratio in the second quarter.

De Volksbank is set to become the first European bank to issue tier two capital in a green bond format.

The Emirate of Sharjah launched its debut Formosa bond on Tuesday. Experts say the format is gaining more interest from emerging market issuers looking to diversify, while investors beyond the traditional Taiwanese buyers are also taking an interest in the market.

South Korea’s NongHyup Bank (NH Bank) added to the flow of Covid-19 linked bonds from Asia on Monday. It raised $500m from a five year social bond.

Dollar bonds sold by Bank of Communications and Industrial and Commercial Bank of China widened in the aftermarket on Tuesday after both firms took a tight approach to pricing.