Europe

OP Mortgage Bank is set to become the first bank in Finland to issue a covered bond secured on energy efficient mortgages after announcing a green covered bond framework. The prospective deal follows a growing crowd and comes after a string of debut covered bonds with an environmental, social or governance theme issued this year.

A group of the UK’s members of parliament has welcomed a model bill on responsible investing, which would encourage pension funds to accept responsibility for the impact their portfolios have on the environment and society.

The coronavirus pandemic has forced the hands of many corporate treasurers to radically alter their business strategies. This will likely have an impact on companies' abilities to meet targets on their sustainability-linked facilities, some bankers believe. Silas Brown reports

The way the EU handles Banca Monte dei Paschi di Siena will yet again set a precedent for other struggling banks.

The European Union will likely go big once again for its second trip to the capital markets to fund its Support to Mitigate Unemployment Risks in an Emergency funding programme, and the obstacles to its €750bn recovery fund are slowly falling away.

Pre-funding is likely to be the name of the game in FIG from next week, with banks expected to use supportive market conditions in the wake of the US election to launch a final flurry of deals before the end of the year.

Banca Monte dei Paschi di Siena confirmed on Thursday that it was looking at options to strengthen its capital position, with the full support of the Italian government. Trading had already been heating up in its tier twos, as investors have been forced to consider whether a capital raise will require burden sharing under EU state aid rules.

Russia's second largest gold producer Polymetal has raised a green loan.

Valuations carried on climbing in the bank bond market on Thursday, as investors appeared keen to look beyond the uncertain outcome of the US presidential election.

Some market participants say the European Central Bank could open itself up to buying preferred senior bank debt if it expands its purchase programmes in December.

Rank Group, the UK gambling conglomerate that owns Mecca Bingo and Grosvenor Casinos, is considering a capital raise for up to 19.9% of its share capital, to see it through the closure of its venues during the second UK Covid-19 lockdown.

Swedish fintech company Nordnet is preparing to test investor sentiment towards European IPOs following the US election, having announced its intention to float on Nasdaq Stockholm.