BBVA

Iberdrola and Copenhagen Infrastructure Partners signed separate loans to develop renewable energy projects in Spain, as analysts say renewable energies are now cheaper for consumers than their fossil fuel counterparts in major markets.

De Volksbank said that ambitious sustainability targets played a big role in helping it to attract investor attention this week. The Dutch lender became the first European bank to sell a tier two bond in green format, hot on the heels of the first green additional tier one transaction.

Market participants said that de Volksbank was close to sailing through fair value with the pricing on its new tier two on Wednesday, the first such deal in green format from a European bank.

Electricity Supply Board, the Irish utility, tapped its June 2030s on Wednesday, with the borrower one of a handful of credits taking advantage of sharply positive sentiment on the back of a potential coronavirus vaccine breakthrough.

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.

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

Market participants expect that bank debt issuance activity will slow down in anticipation of earnings season over the next few weeks. But deal arrangers suggest banks will still be keen to access the primary market during this period, should conditions remain favourable.

Each week, Keeping Tabs brings you the very best of what we have found most useful, interesting and informative from around the web. This week: liquidity in the age of central banks, making bank capital green, and US fiscal stimulus.

BBVA has become the first bank to print a green additional tier one (AT1) deal. When it was issued this week, it proved that the demand for socially responsible investments (SRI) extends to the riskiest of asset classes, meaning other banks are certain to bring out their own versions of the trade, writes David Freitas.

Rating: A3/A/BBB+

Bankinter continued the additional tier one (AT1) supply spree on Thursday, becoming the third issuer to launch this type of bond this week and receiving praise for the 6.25% coupon it achieved.

Some parts of the market are talking about the benefits of ultra-short, money market debt that has a sustainability theme, while on Tuesday BBVA issued a perpetual green bond, albeit with a call. The viability of both these forms of debt shows that the common perception of green bonds is not quite true.