SEB

Socially responsible investment deals were the focus of attention in the primary SSA market this week, as the World Bank and the Flemish Community of Belgium sold well-received green and sustainability bonds, respectively. Bank Nederlandse Gemeenten and Eurofima have added to the public sector SRI pipeline, which is showing no signs of slowing down as the year end approaches.

In an otherwise barren week for block trades, Hansa Medical, the Swedish biotechnology company, raised Skr399.8m of fresh capital to fund product development. The deal also provided an opportunity for Nexttobe AB to sell a portion of its stake in the company.

Bank of China returned to the bond market with a multi-tranche, multi-currency bond this week, making clear that its funding needs and its role as a flag-bearer of Chinese policy overseas are inextricably linked. Morgan Davis reports.

World Bank hit both the euro and dollar markets on Tuesday for its first syndicated green bond in over three years. Onlooking bankers were surprised by the level of demand for the euro tranche given what they claimed was aggressive pricing.

Finland’s Ahlstrom-Munksjö has signed $1.09bn-equivalent in acquisition and backstop facilities, as the fibre materials company prepares to buy US paper producer Expera Specialty Solutions.

Nordic and Eastern European telecoms group Tele2 is planning to fund its acquisition of peer Com Hem with its first bond in euros, as borrowers return from earnings blackouts leading to more activity in the primary markets.

Rating: Aaa/AAA

Established SRI bond issuers are bringing deals to market over the coming weeks, including a new format from a seasoned borrower.

Swedish bank SEB has appointed a new head of large corporate coverage in the UK, luring a managing director from Santander.

The European Investment Bank launched its new line of Sustainability Awareness Bonds on Thursday, with a €500m issue that found keen demand from investors. The EIB hopes the SABs will influence the debate on classification in the world of sustainable finance, including the European Commission’s new official Taxonomy of sustainable economic activities.

Rating: Aaa/AAA/AAA

The European Investment Bank achieved very tight pricing for the launch of its first sustainability bond on Thursday, in a sign that the exhaustive marketing it had done for the €500m deal had succeeded. The EIB sees this new product line as a way to influence market practice in the direction of clear explanation of sustainability goals and indicators.