HSBC

The Arab Republic of Egypt has mandated banks to arrange its debut green bond, which will be the first sovereign green bond from the Middle East and North Africa. The deal, according to bankers, has been in the works for over a year and has been delayed by the Covid-19 pandemic.

Mizuho Financial Group will be looking to time the sale of a new senior deal very carefully this week, with euro market conditions still proving challenging for issuers.

Turbulent conditions forced several banks to delay bond issuance plans this week, and one even pulled a transaction after launch. Deal flow is likely to pick up again soon, but the cost of funding is certain to be higher, writes Tyler Davies.

The European Central Bank decision to exempt sustainability-linked bonds from its internal rule that stops it buying bonds with step-up coupons is the final step in allowing this new market to take flight, specialists said this week.

Chanel, the French luxury brand, made its debut in the sustainability-linked bond market on Thursday, but the deal found a lacklustre response from investors as question marks hang over demand for high end discretionary spending.

AIB Group's new euro tier two capital issue, its first green bond, was comfortably subscribed on Wednesday, lifting confidence in the bank debt market after a difficult start to the week.

China Development Bank Financial Leasing Co had to tackle questions from investors and weaker market conditions to sell the first dollar tier two bond from a Mainland leasing company.

Chanel, the French luxury brand, is meeting investors over the next two days to market a sustainability-linked bond, the first from its sector and from an unrated company. The deal comes as the European Central Bank has changed a policy that had slowed the market's development.

CCB Leasing’s plans to raise $500m were scuppered after markets tanked and investor sentiment took a hit on Monday. The Chinese firm was forced to adjust its expectations for a smaller $300m bond.

First Abu Dhabi Bank, the highest rated lender in the Middle East, has mandated bookrunners to lead a perpetual non-call six year additional tier one (AT1) capital issue.

Beijing Enterprises Holdings took €500m from its maiden green bond on Thursday, helped by support from the bookrunners on the deal.

Sustainability-linked bonds took a full year to get going after Enel, the Italian power and gas company, introduced the structure in September 2019. But they are now gathering pace. This week Novartis, the Swiss pharmaceutical company, printed a deal, just a week after Suzano, the Brazilian pulp and paper group, had become the second issuer.