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◆ Peak demand tops €3.25bn ◆ Deal lands close to fair value ◆ Credit has improved in recent months
◆ Italian issuer pairs two sustainable formats ◆ Trade hits size targets ◆ Tight price tests investors' limits
◆ Yield hunters send Orange's book ballooning ◆ Deal lands through fair value ◆ Corporate hybrid supply doubles year-on-year
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Sustainability-linked bonds with variable coupons are winning wide acceptance among investors, according to a survey by Natixis of 40 investment managers with $20tr of assets between them. Investors think they could be used by issuers of all kinds, want to see robust standards, and are open to structural innovations.
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Europe’s high grade primary bond market was pumping out deals with double figure new issue concessions this week, though German real estate company Vonovia’s debut green deal showed that ESG demand is still strong enough that borrowers don’t have to offer extra.
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French car parts maker Faurecia has issued its first green bond, which will help fund its growing investments in hydrogen fuel cell technology.
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Complex refis, Covid-hit industries and chunky dividends are the order of the day in levfin, as banks clear out the tougher end of their pipeline in the last weeks of the quarter.
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Despite the disruption that the coronavirus pandemic and, more recently, volatility in global markets have brought to emerging market debt, issuers in the CEEMEA region are not backing away from their pivot towards ESG financing. Though concerns about greenwashing are holding the market back, new sustainability-linked and transition structures are tempting issuers.
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National Grid, the UK utility, is planning a loan-funded £7.8bn acquisition of the UK’s largest electricity distribution business from US firm PPL Corp. The deal could see £2.7bn of the utility’s assets sold to PPL.
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