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◆ Hybrid bonds bid wider as govvies sell off ◆ EDF book holds firm earlier this week ◆ Some concession ensures healthy demand
More fully battery electric vehicle-backed deals are expected with similar loans expected to back a larger proportion of mainstream auto ABS
◆ Part of prefunding for 2027 ◆ Low-to-mid single digit NIP ◆ Green issuance has increased since last year
◆ ADB brings ‘impressive’ seven year ◆ NWB hits five year sweet spot ◆ Both deals tighten a large 3bp
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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.
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The Asian Infrastructure Investment Bank and the New Development Bank, two relatively new supranational borrowers with a focus on the emerging markets, made a big splash in dollars this week as they continue to build out their curves. The issuers managed to achieve strong results despite facing worse volatility than expected as markets soured amid rising fears over the coronavirus pandemic.
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Having issued the first sustainability-linked bond in September 2019, Enel, the Italian power and gas company, has gone further, by setting up a commercial paper programme that will fall away if it fails to hit a sustainability target.
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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.
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Africa Finance Corp, the pan-African development finance institution, printed its first green bond on Monday.
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The volume of sukuk issues — bonds structured in line with Islamic financing principles — is set to decline this year, despite the market’s best attempts to diversify and become more sustainability-focused.