SRI / Green Bonds - All Articles


  • MEPs rebuke banking regulator for revolving door

    Members of the European Parliament have hit out at the appointment of a top banking regulator as chief executive of the lobbyist group the Association for Financial Markets in Europe. Meanwhile, the regulator has nominated a former Afme lobbyist as his successor.

    • 17 Jan 2020
  • LBBW mandates leads for first green sterling non-preferred

    Landesbank Baden-Württemberg (LBBW) is set to become the first issuer of green non-preferred senior paper in the sterling bond market, as well as the first financial institution to include sustainability ratings in a new deal mandate.

    • 17 Jan 2020
  • Calisen presses ahead with first UK IPO of the year

    Calisen Group, the KKR-backed operator of smart meters, has confirmed its intention to float on the London Stock Exchange, formally launching the first major UK IPO of the year.

    • 17 Jan 2020
  • Chilean corps tick over as sovereign preps green deal

    Chemicals company SQM became the latest Chilean firm to issue internationally on Thursday, as the country’s corporates continue to take advantage of high levels of liquidity to pre-fund ahead of a potentially volatile year.

    • 16 Jan 2020
  • The power of making a fuss

    As head of BlackRock, the largest asset manager, Larry Fink’s pivot to responsible investing in recent years has been influential.

    • 16 Jan 2020
  • Investors fight SEC curbs on ESG motions

    The latest battle in the campaign to weaken corporate governance standards in the US is being fought over rule changes that would make it harder for investors to propose motions at shareholder meetings. The ‘proxy advisers’ so central to US governance also face new restrictions.

    • 16 Jan 2020
  • Oil and gas ABS market grows despite push for ESG

    Securitizations tied to oil and gas-related cash flows have emerged in recent months, despite growing support from the buy side for socially responsible investments (SRI). Though they run contrary to environmental, social and governance (ESG) principles, issuance of oil and gas royalty ABS may persist as long as the deals offer attractive yields, or until ESG investments pay a premium to brown ABS. Jennifer Kang reports.

    • 16 Jan 2020
  • Corporate sterling issuers launch blowout market reopening

    High grade corporate names kicked off the 2020 sterling market in style this week, with big books and eye-catching trades for the University of Oxford, Clarion Housing and Ireland's Electricity Supply Board.

    • 16 Jan 2020
  • Corporate green bond issuance hits record levels

    The European socially responsible investment corporate bond market has made a rampant start this year, with issuance in the first two weeks already more than 10% of the total issued by companies in European currencies in 2019.

    • 16 Jan 2020
  • NordLB Lux mandates for first renewable energy deal, again

    NordLB Luxembourg was expected to arrive in the market with its inaugural renewable energy covered bond late last year, having completed a market programme and mandated lead managers. On Thursday it finally plucked up the courage to re-announce the long-awaited deal — the first to be ever issued under the country’s new law.

    • 16 Jan 2020
  • More corporate borrowers adding loan language to green frameworks

    Corporate treasurers are increasingly ensuring their green borrowing frameworks include loans, though sustainability bankers note that the most popular loan structure is still not being included.

    • 16 Jan 2020
  • Investors look to transition bonds to fund CEE’s sustainability transition

    Transition bonds are likely to be a key part of the development of a sustainable economy in central and eastern Europe, delegates said at the Euromoney Central and Eastern European Forum in Vienna this week. While investors are keen to put money to work in the region, government support is still needed.

    • 16 Jan 2020
  • Property companies build on bond momentum

    Three Chinese real estate companies raised $850m between them from the dollar debt market on Wednesday.

    • 16 Jan 2020
  • Clarion Housing pays zero NIP for blowout sterling green bond

    The UK's Clarion Housing Group, a housing association, got a rapturous reception from the sterling bond market on Wednesday, which allowed it to increase its green bond and price it flat to its curve.

    • 15 Jan 2020
  • CFTC fines Mirae Asset Daewoo for spoofing

    South Korea’s Mirae Asset Daewoo has been ordered to pay $700,000 after a US Commodity Futures Trading Commission investigation found one of its traders had engaged in spoofing.

    • 14 Jan 2020
  • Pharming Group reopens EMEA’s CB market

    Europe’s primary equity-linked market has reopened, with a new €125m convertible bond from Pharming Group, the Dutch speciality pharmaceuticals company.

    • 14 Jan 2020
  • Turkish bank gets the green light

    Turkish lender Yapi Kredi ventured into the green bond market for the first time on Friday with a rare dollar private placement, its first since January 2016, according to Dealogic data.

    • 14 Jan 2020
  • Sinopharm seeks second loan in six months

    Sinopharm Holding (China) Finance Leasing Co is seeking a $215m-equivalent loan.

    • 14 Jan 2020
  • Posco makes comeback with dollar/euro bonanza

    South Korean steel company Posco made a blockbuster return to the debt market on Monday, raising $940m from dollar investors and €500m from the European market. The peak order book of about $5.75bn for the dollar portions reflected investors’ eagerness to take on investment grade risk.

    • 14 Jan 2020
  • Chile wins green certification ahead of bond return

    Chile will return to international markets with a green bond to fund transport plans after its portfolio of projects received a favourable opinion from third-party providers.

    • 14 Jan 2020
  • Goldman brings first green CMBS deal to Europe

    Goldman Sachs is bringing River Green Finance 2020, the first European commercial mortgage-backed security (CMBS) of the year and the first in Europe to be marketed as green.

    • 13 Jan 2020
  • Orderbooks bulge as corporate bonds turn green

    Environmentally minded investors piled into green and sustainable corporate bond issues in Europe on Monday, with deals for Energias de Portugal, South Korean steel company Posco and National Grid garnering around €10.3bn of demand.

    • 13 Jan 2020
  • National Grid makes roaring green euro debut

    The UK’s National Grid Electricity Transmission made a barnstorming entrance to the green bond market on Monday, cutting its spread and winning a bumper book for its first euro bond issue in more than a decade.

    • 13 Jan 2020
  • EFSF grabs big book for 30 year as EIB, CEB and sovereigns hit screens

    The European Financial Stability Facility took the spotlight in the euro public sector bond market on Monday with an intraday execution ahead of a busy week. The European Investment Bank, Council of Europe Development Bank, Spain and Cyprus have all announced new deals.

    • 13 Jan 2020
  • Goldman creates sustainability council

    Goldman Sachs is forming a Sustainable Solutions Council for its investment banking division, with four members for the Europe, Middle East and Africa region.

    • 13 Jan 2020
  • Climate and digitisation to dominate SSAs’ 2020

    An unusual note of optimism defines the attitude of Europe’s public sector issuers as they approach 2020. While many other markets are beset by fears of a slowdown in global growth, trade wars, and Brexit, SSA borrowers are confident in their borrowing strategies and loyal investor bases. Despite a change of face in the ECB’s top job, rates are still set to remain low for the foreseeable future. Accordingly, investors are having to grit their teeth to stomach the scanty yields on offer for euro SSA assets. Although SSAs are offering little in the way of yield, their place as pioneers of the evolving SRI market always ensures lively debate. In this roundtable, held in early November, market participants on both the buyside and the sell side favoured a more holistic assessment of issuers’ ESG profiles, rather than relying on labelled assets, but whether or not the ECB should take a role in promoting the SRI market through “green QE” divided the group.

    • 13 Jan 2020
  • Shriram's social bond gets stellar US support

    Shriram Transport Finance Co appealed to investors in the US by selling a social bond that flew off the shelves, allowing the Indian non-banking financial company to raise $500m.

    • 10 Jan 2020
  • Sustainability loans need rating agencies

    The sustainability-linked loan market is a glorious mess.

    • 10 Jan 2020
  • LMA to guide banks on how to avoid greenwashing in sustainable loans

    The loan market’s trade bodies are preparing to give new guidance about how to ensure sustainability-linked loans — in which borrowers can get a margin reduction if they hit sustainability targets — are genuinely “ambitious”. Bankers want to protect the market from rising concerns that some deals’ terms are too easy on the borrowers.

    • 09 Jan 2020
  • Finanzagentur sure green Bunds will be liquid

    Germany’s debt management office, the Finanzagentur, is confident its green bonds will be liquid when the first issue is launched in the second half of 2020 and has high hopes that they will trade tightly relative to ordinary Bunds. Its innovative plan to use a “twin bond” structure is designed to reassure investors and remove any doubt about liquidity.

    • 09 Jan 2020
  • Commodities position limit debate to kick off again as NGOs eye ESMA consultation

    As market participants sent in their final responses to the European Securities and Markets Authority's consultation on MiFID II’s commodity derivatives position limits, NGOs look set to fight against financial industry suggestions. An Oxfam official said he was “worried and disappointed” by the exercise.

    • 09 Jan 2020
  • World Bank’s cat bonds a win for all, says analyst

    Catastrophe bonds issued by the World Bank have been positive for both investors and the countries receiving protection from the securities, according to one market veteran. The organisation’s activity in insurance-linked securities has been highly innovative but has also received criticism from some quarters.

    • 09 Jan 2020
  • Maple market opens with green shoots

    A pair of supranationals opened the Maple market with sustainability bonds this week. The Canadian green market is “going through a growth phase” as more and more domestic investors show interest in the product, according to bankers.

    • 09 Jan 2020
  • Portugal looking at green bonds ‘inevitable’ says DMO chief

    Portugal will likely examine the issuance of green bonds following the re-election in October of the country’s socialist party who are focused on sustainability, according to the head of the Portuguese debt management office.

    • 09 Jan 2020
  • Record debt pile leaves emerging markets ‘vulnerable’ to shock

    Emerging market borrowers’ growing appetite for capital market debt has increased the risks of a shock triggering a financial crisis, the World Bank has warned.

    • 09 Jan 2020
  • Solar ABS issuer inks $200m solar loan sale

    Residential solar lender Dividend Finance has signed a $200m residential solar loan sale with an institutional investor.

    • 09 Jan 2020
  • E.On, Red Electrica power up green bonds

    Green corporate bond investors had plenty to sink their teeth into on Thursday, with electric utlities E.On bringing three tranches and Red Electrica making its debut in the format.

    • 09 Jan 2020
  • Calisen Group revives UK IPO market in 2020

    Calisen Group, the KKR-backed manufacturer of smart energy appliances, is preparing to raise £300m via an IPO on the London Stock Exchange, having announced its intention to float on Thursday.

    • 09 Jan 2020
  • Spain to be enthusiastic, classical green issuer

    Spain’s formation on Monday of a Socialist-led coalition government, even one with no parliamentary majority, has opened the way for the country to press ahead with launching its first green bond. The deal of about €5bn is likely to be syndicated in the second half of 2020, and could prove one of the prize mandates of the year for banks to compete for.

    • 09 Jan 2020
  • BMW and Digital Realty go long term

    European corporate bond issuers started pushing out their debt maturities on Wednesday, as BMW Finance and Digital Realty issued 10 year and longer paper, even though some investors are keen to rein in duration in their portfolios.

    • 08 Jan 2020
  • Faber-Castell pencils in sustainability-linked SSD

    Faber-Castell, the German manufacturer of office supplies, was the second borrower to enter the Schuldschein market in 2020, offering five and seven year notes with a sustainability-linked ratchet on Wednesday.

    • 08 Jan 2020
  • NMC Health insiders sell £375m of stock

    Two major insiders offloaded £375m of stock in NMC Health, the troubled UAE-based private healthcare company to cover debts on Tuesday. The share sale, which was priced at a 19.7% discount to close, came weeks after a short selling attack on NMC Health by US activist hedge fund Muddy Waters, which caused the company to lose more than half of its market value.

    • 08 Jan 2020
  • ‘Almost perfect’ Orsted trade reopens EMEA ECM

    A Dkr6.4bn (€856m) block of shares in Danish renewable energy firm Ørsted reopened the EMEA ECM market on Tuesday evening and attracted huge investor demand for the stock — including from ESG investors.

    • 08 Jan 2020
  • Reden Solar offers euro PP market a green deal

    Reden Solar, a French company that constructs and manages photovoltaic power plants, has sold a green euro private placement (PP).

    • 08 Jan 2020
  • Vetter first off the blocks in Schuldschein market

    German pharmaceutical firm Vetter launched a Schuldschein on Tuesday, which is the first such offering in the market in 2020.

    • 08 Jan 2020
  • Investors talk big on corporate responsibility, but act feebly

    The noise about how capitalism is changing to a system in which social purpose is restored to the centre of companies' and investors' aims is now deafening. But look below the surface and the actual governance record of many companies and investors is dreadful. Most shareholders are too supine even to defend their own rights.

    • 07 Jan 2020
  • MSCI launches ESG and factor indices

    MSCI has launched a range of new indices aimed at corporate bond investors that want to increase their environmental, social and corporate governance and factor exposure.

    • 07 Jan 2020
  • Digital Realty on cusp of multi-tranche part-green euro

    US REIT Digital Realty has mandated banks for a multi-tranche bond issue, as Reverse Yankee issuers get their feet under the table of the euro bond market early in 2020.

    • 07 Jan 2020
  • Short selling can promote greater corporate responsibility

    Short sellers' detractors say they are detrimental to the responsible stewardship of companies. This is unfair; they can play a useful role in highlighting deceptive practices in a world of greenwashing.

    • 07 Jan 2020
  • Xinyi Solar block fetches $231m

    A group of shareholders in Xinyi Solar Holdings have bagged HK$1.79bn ($230.7m) after selling a block of shares in the company, according to a source familiar with the matter.

    • 07 Jan 2020
  • Solar ABS players see ITC step-down as potential boost

    The solar Investment Tax Credit is set to step down and ultimately expire in two years — an expected but still disappointing development for the solar industry. Some, however, see the expiration of the ITC as a boon for solar securitization because it will do away with a complicated feature that has been a hurdle for issuers looking to market deals.

    • 06 Jan 2020
  • World Bank readies sustainable Maple deal

    The World Bank hit screens on Monday with a mandate for a new five year sustainable development Maple bond — its first public Canadian dollar issue since September.

    • 06 Jan 2020
  • National Grid returns to euros for green debut

    The UK’s National Grid Electricity Transmission is set to make its debut green bond issue in euros, when it returns to the currency for the first time for more than a decade.

    • 06 Jan 2020
  • Atlantica Yield opens US PP market with debut offering

    Atlantica Yield, formerly the UK-based energy yieldco Abengoa Yield, has launched a debut US private placement, which is the first US PP offering in 2020 in Europe.

    • 06 Jan 2020
  • FTSE Russell grows ESG research coverage in Apac

    Index provider FTSE Russell is expanding the remit of its sustainability investment research in Asia Pacific to include hundreds more Chinese and Japanese securities.

    • 06 Jan 2020
  • Chilean issuers remain bullish as CMPC leads Lat Am off the blocks

    Chile’s head of international finance has told GlobalCapital that the debt management office is making communication with investors its number one priority as it announced borrowing plans — including an atypically large amount of international issuance — earlier than usual after a turbulent fourth quarter.

    • 06 Jan 2020
  • MicroPort plans to spin off CardioFlow unit

    Hong Kong-listed MicroPort Scientific Corp is looking at spinning off and listing its heart treatment subsidiary, according to a stock exchange filing.

    • 06 Jan 2020
  • Chinese biotech firm I-Mab launches $111m US listing

    I-Mab, a China-based biopharmaceutical company, has kicked off the roadshow for its up to $111.1m Nasdaq IPO, more than two months after filing draft documents with the US regulator.

    • 06 Jan 2020
  • Six more European nations could issue green

    Market participants are forecasting a strong year of growth for the green bond market in 2020, after it reached record issuance in 2019.

    • 03 Jan 2020
  • Green finance grows in Middle East as Etihad signs loan

    Etihad Airways has signed a €100m loan linked to the UN’s Sustainable Development Goals. The deal is one of the latest ESG-linked financings signed in the Middle East, which is developing an appetite for sustainability-linked debt.

    • 02 Jan 2020
  • Panda Green pushes back distressed exchange deadline

    Chinese solar power operator Panda Green Energy Group has extended the deadline of a distressed exchange offer. The new note issuance will now be finalised in the same week that its $350m bond becomes due.

    • 02 Jan 2020