FIG

Banks weigh options amid EBA caution on SLBs

FIG

Banks weigh options amid EBA caution on SLBs

Market participants are considering whether sustainability-linked bank bonds have a future after the European Banking Authority expressed doubt over the format’s regulatory eligibility this week. The debate remains open, but some ESG bankers predict the focus for innovation could now switch to ‘use of proceeds’ products.

Latest News

  • Erste Croatia debut set for early next week

    Erste Croatia debut set for early next week

    Erste Bank’s Croatian subsidiary will sell its first euro denominated preferred senior note next week, which it will count towards its minimum requirement for own funds and eligible liabilities (MREL).

  • NAB lines up euro covered return

    NAB lines up euro covered return

    National Australia Bank has mandated leads for the first Australian covered bond in euros for over two years. With redemptions outstripping supply this month, the NAB deal could be the beginning of a spurt of issuance.

  • Greenwashing is in the mouth of the investor

    Accusations of greenwashing have been infrequent in the 14 year old green bond market, which mainly sticks to uncontroversial assets, such as renewable energy and railways. The sustainability-linked bond market is only a toddler, but already a much more difficult child. No wonder: it is handling tougher material.

  • Covered bond sensitivity still on display

    Covered bond sensitivity still on display

    Three covered bonds issued this week from Korean Housing Finance Corp, Caffil and Oberbank were well received, but they would not have made it over the line without attractive new issue concessions.

  • Small names bask in attractive pre-summer window

    Small names bask in attractive pre-summer window

    A smattering of smaller euro issuers made the most of an attractive window this week, as they looked to use the stable conditions to take “some risk off the table” ahead of the summer break.

  • Next Next Gen deal the focus in rates markets

    Next Next Gen deal the focus in rates markets

    Rates markets have been well supported in the last few days, but covered bond spreads are still a little shaky with market makers waiting to see the outcome of the next deal from the EU for its €800bn Next Gen programme that is expected to emerge on Monday.

  • Banks weigh options amid EBA caution on SLBs

    Banks weigh options amid EBA caution on SLBs

    Market participants are considering whether sustainability-linked bank bonds have a future after the European Banking Authority expressed doubt over the format’s regulatory eligibility this week. The debate remains open, but some ESG bankers predict the focus for innovation could now switch to ‘use of proceeds’ products.

  • UBS prints tight green debut as UniCredit lines up

    UBS prints tight green debut as UniCredit lines up

    UBS sold its first green bond this week, bringing the deal at the tightest euro senior spread of the year so far. Further labelled issuance is set to follow, with UniCredit preparing a green debut of its own.

Covid-19 Crisis

In Depth

  • Investors push back as bank funding finds floor

    Banks are asking whether funding conditions have reached a peak, as investors find more reason to balk at tight bond valuations. Deal arrangers argue markets will hold together, but the future could still hold higher new issue premiums and a more careful approach when it comes to trade selection.