Green and Social Bonds and Loans

  • BNPP sells MTNs linked to new Aussie climate index

    BNPP sells MTNs linked to new Aussie climate index

    BNP Paribas has issued a series of green medium-term notes linked to the performance of the new Australian Climate Transition Index (ACT), which is made up of companies expected to thrive in the transition to keep global warming below 2°C.

  • Housing 21 joins UK housing association issuance fray

    Housing 21 joins UK housing association issuance fray

    Housing 21, a UK housing association, is looking to tap its November 2049 notes for an expected £100m, as bond market participants say that the Covid-19 economic crisis has made housing associations an attractive option for high grade sterling investment.

  • Social revolvers are the feelgood hit of the summer; more firms should get involved

    Social revolvers are the feelgood hit of the summer; more firms should get involved

    Canny loans bankers have devised a social revolving credit facility structure that links a portion of a borrower’s debt directly to Covid-19 era relief spending. It’s a structure that won’t take the markets by storm on what is likely the eve of global recession but ESG-minded investors should still push hard for the companies they own to consider this new type of funding.

  • Renovation revolution spurs green covereds

    Renovation revolution spurs green covereds

    The refurbishment of existing housing stock promises to deliver big strides in cutting global carbon emissions and will provide issuers with a large new stream of green collateral to issue green covered bonds.

  • SG to derisk structured products

    SG to derisk structured products

    Société Générale will make its structured products less risky, it said, after a difficult first half of the year in its equities business.

  • Transition idea key as banks present sustainability goals

    Transition idea key as banks present sustainability goals

    Citi, Deutsche Bank and Credit Suisse all launched pledges related to environmentally friendly financing this week, as banks face continued pressure to make their balance sheet greener. The details of the announcements also displayed how the idea of “transitioning” high-carbon companies to become more sustainable has become popular in banking.

  • ESG covereds due post-Taxonomy take off

    ESG covereds due post-Taxonomy take off

    The primary market for covered bonds with environmental, social or governance (ESG) purposes has been exceptionally strong this year, and with the European Union’s Taxonomy regulation recently coming into force and strong execution happening even in difficult market conditions, there are high hopes that issuance will scale new heights.

  • CCB seals $1.2bn return to green

    CCB seals $1.2bn return to green

    China Construction Bank Co sold a $1.2bn dual-tranche green deal on Tuesday, becoming the first Chinese financial institution to sell a green dollar bond this year.

  • Kosep adds to Asia’s sustainability bond supply

    Kosep adds to Asia’s sustainability bond supply

    Korea South-East Power Co (Kosep) has printed a $300m sustainability bond, in part to tackle the impact of Covid-19, becoming the third issuer from the country to tap the socially responsible investment market this month.

  • Saudi signs green ECA loan, other sovs to take note

    Saudi signs green ECA loan, other sovs to take note

    Saudi Arabia has secured its inaugural green loan backed by an export credit agency (ECA). The deal, which is the first of its kind in the region, may have a domino effect on other sovereigns in the Gulf, said bankers.

  • Covid-19: SSA response bonds

    Covid-19: SSA response bonds

    Sovereign, supranational and agency bond issuers are mobilising their resources to support the fight against Covid-19. The below table details the bonds they have issued, specifically in response to the coronavirus pandemic.

  • HSBC creates solutions teams for ESG, FIG and corps

    HSBC creates solutions teams for ESG, FIG and corps

    HSBC has become the latest bank to create a dedicated team for sustainable finance amid the coronavirus crisis. This is part of a new strategic solutions group, which will also house two other solutions units: one for corporate finance, and one for financial institutions and capital.

  • Pandemic puts social top for corporate ESG

    Pandemic puts social top for corporate ESG

    The coronavirus pandemic has pushed the social element of environmental, social and governance finance to the forefront of corporate financial officers’ minds, with bankers and investors agreeing that a focus on the still nebulous area of social investing is going to create a hotbed of innovation as a result.

  • KfW extends green curve with record demand

    KfW extends green curve with record demand

    Investors turned out in force as KfW brought its first benchmark green bond of the year this week. The strong demand allowed the German agency to print its joint biggest ever green bond on the back of its largest ever order book for such a deal along with an attractive pricing advantage over a conventional bond.

  • People news in brief

    People news in brief

    Invesco changes fixed interest line-up — BofA makes Slowey equities head — NordLB hires two for DCM

  • LuxSE makes Hamon sustainable head

    LuxSE makes Hamon sustainable head

    Laetitia Hamon has joined the Luxembourg Stock Exchange to lead its sustainable finance offering, including its exchange for securities branded as sustainable.

  • KfW smashes benchmark return as greeniums widen

    KfW smashes benchmark return as greeniums widen

    KfW made a strong return to the benchmark green bond market on Tuesday, taking advantage of a more attractive pricing dynamic for green bonds over conventional issuance compared to earlier in the year.

  • Sustainability taxonomy at heart of EIB engagement

    Sustainability taxonomy at heart of EIB engagement

    When the European Parliament voted to approve the EU Taxonomy Regulation on June 18 — the final step in the Regulation’s legislative journey to providing the foundation for sustainable finance in Europe — more than just a glass was raised at the European Investment Bank. The issuer took the opportunity to issue a new Climate Awareness Bond (CAB) and announce the extension of CABs to two new project areas that substantially contribute to climate change mitigation.

  • World Bank out with first dollar benchmark of new fiscal year

    World Bank out with first dollar benchmark of new fiscal year

    World Bank mandated banks on Monday to lead its first dollar benchmark transaction of its 2020/21 financial year, which could be priced tighter versus mid-swaps than any other five year dollar trade since the start of the coronavirus pandemic.

  • KfW goes for size with first benchmark green bond of 2020

    KfW goes for size with first benchmark green bond of 2020

    KfW will lead the charge in the euro public sector bond market on Tuesday with a €3bn green bond that will match its biggest ever deal in the format. Eurofima and the State of Berlin are also preparing to bring bonds to the euro market.

  • The green recovery: Spanish renewables get loan market funds

    The green recovery: Spanish renewables get loan market funds

    Iberdrola and Copenhagen Infrastructure Partners signed separate loans to develop renewable energy projects in Spain, as analysts say renewable energies are now cheaper for consumers than their fossil fuel counterparts in major markets.

  • De Volksbank extends green trend to tier twos

    De Volksbank extends green trend to tier twos

    De Volksbank said that ambitious sustainability targets played a big role in helping it to attract investor attention this week. The Dutch lender became the first European bank to sell a tier two bond in green format, hot on the heels of the first green additional tier one transaction.

  • Tennet hybrid tightens to quieten naysayers

    Tennet hybrid tightens to quieten naysayers

    The new green hybrid bond from Dutch utility Tennet was trading tighter on Thursday, quelling suggestions from bankers off the trade that the deal’s oversubscription level was an indication that it would underperform.

  • Siegfried Ruhl on how the ESM plans to help the eurozone through coronavirus

    Siegfried Ruhl on how the ESM plans to help the eurozone through coronavirus

    The European Stability Mechanism was set up in 2012 as a backstop for euro area member states that were unable to access the capital markets during the eurozone sovereign debt crisis. GlobalCapital spoke to Siegfried Ruhl, the ESM’s head of funding and investor relations to see how the institution is once again looking to play a crucial role to support the bloc through its Pandemic Crisis Support credit lines and how this will be financed.

  • Tennet brings green hybrid flat to its curve

    Tennet brings green hybrid flat to its curve

    Tennet, the Dutch utility, lit up the market with a €1bn green hybrid that came flat to its curve on Wednesday, though some away from the trade said they would have expected to see a slightly larger book for such a well-regarded issuer.

  • NH Bank raises Covid-linked debt

    NH Bank raises Covid-linked debt

    South Korea’s NongHyup Bank (NH Bank) added to the flow of Covid-19 linked bonds from Asia on Monday. It raised $500m from a five year social bond.

  • Cifi sells inaugural green bond

    Cifi sells inaugural green bond

    Cifi Holdings (Group) Co sold its first green bond on Monday, raising $300m from a deal that received $2.25bn of investor order at its peak.

  • Tennet mandates for green hybrid

    Tennet mandates for green hybrid

    Tennet, the Dutch utility, has mandated for a long-telegraphed green hybrid bond, as the company looks to protect its credit rating during stakeholder discussions with the German and Dutch governments.

  • Oatly’s sustainable loan is real deal, says CFO

    Oatly’s sustainable loan is real deal, says CFO

    Oatly, the Swedish oat milk producer, is taking on debt to finance building two new factories with its first ever syndicated loan, and naturally chose a sustainability-linked instrument, its chief financial officer said. Those hoping for an IPO will have to wait a while longer.

  • The CARES Act, liquidity tracked and green AT1s unpacked

    The CARES Act, liquidity tracked and green AT1s unpacked

    Each week, Keeping Tabs brings you the very best of what we have found most useful, interesting and informative from around the web. This week: liquidity in the age of central banks, making bank capital green, and US fiscal stimulus.

  • Bertrand de Mazières, EIB: 'all of us have to do more in times of crisis'

    Bertrand de Mazières, EIB: 'all of us have to do more in times of crisis'

    Bertrand de Mazières is one of the best known and most respected figures in European debt capital markets. As director general of finance at the European Investment Bank (EIB), he oversees one of Europe’s most important bond issuers, a status not only due to the amount it issues each year, but also its role as a setter of standards and benchmarks for rest of the market — in good times and bad.

  • BBVA clears path for green AT1s in FIG first

    BBVA clears path for green AT1s in FIG first

    BBVA has become the first bank to print a green additional tier one (AT1) deal. When it was issued this week, it proved that the demand for socially responsible investments (SRI) extends to the riskiest of asset classes, meaning other banks are certain to bring out their own versions of the trade, writes David Freitas.