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SRI

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SSA

SSAs tap Swiss franc demand in thin summer market

Market expects pipeline to pick up in second week of August
Cracks emerge in underlying quality as banks appear to teeter further into cautiousness

UK water sector strives to avoid being sucked into Thames Water maelstrom

Thames's troubles are contained for now, but risk of contagion remains
SSA

Political jitters pushed aside as Gilts are swept up in global bond sell-off

New prime minister and surprise chancellor jolted the Gilt market, but oil shooting above $100 shows where the real power lies
Cracks emerge in underlying quality as banks appear to teeter further into cautiousness
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  • SRI
    Issuance of sustainability-linked bonds is set to resume next week, after a year’s hiatus since the product was introduced by Enel, the Italian power and gas company. Many possible deals have fallen by the wayside, as market participants have realised the structure is more difficult to use than they had thought. But Suzano, the Brazilian paper company, will roadshow an issue on Tuesday and Wednesday and other transactions are expected in the coming months.
  • Royal Schiphol, the Dutch airport operator, brought a dual tranche conventional and green bond with a small to flat new issue premium on Tuesday. The issuer opted to make the longer 12 year tranche green, which bankers say is indicative of lengthening maturities in the typically mid-tenor corporate green bond market.
  • Senior deals from Banco de Sabadell and Mediobanca underlined the pricing benefits of printing in green formats this week, with both coming inside conventional curves. Other issuers could be tempted to follow.
  • Daimler blasted far through its conventional bond curve with its €1bn debut green deal on Thursday, in a first for the European automotive industry that is expected to herald a spate of similar issuance — and could reset expectations about the difference between green and conventional bond pricing.
  • In a busy week for European sovereign sustainable issuance, Municipality Finance took the chance to sell its debut social bond — the first in the format from any Nordic SSA.
  • China Merchants Bank (CMB) sold its first green bond on Wednesday, taking $800m on the back of support from sustainability-focused investors.