The Sustainable Economy

  • Working from home catches on in capital markets

    Working from home catches on in capital markets

    Those working in capital markets have found aspects of working from home difficult. But many believe the new routines will not be put back in the box once offices are allowed to fill up again.

  • Financing firm for KKR’s Viridor buy despite market chaos

    Banks financing KKR’s £4.2bn purchase of waste management firm Viridor from Pennon were able to demonstrate certainty and deliverability of the financing for the deal to the Pennon board, despite chaotic markets which have seen rapid plunges in the prices of leveraged loans and high yield bonds.

  • Government-guaranteed ABS prices amid market freeze

    Government-guaranteed ABS prices amid market freeze

    The Small Business Administration (SBA) priced a government-guaranteed small business loan securitization this week in an otherwise frozen primary market. The role of government agencies such as the SBA is expected to be crucial in mitigating Covid-19’s impact as many other issuers find themselves paralysed in the face of volatility.

  • InnoCare IPO tackles virus with virtual roadshow

    InnoCare IPO tackles virus with virtual roadshow

    Global equity capital markets suffered severe hits this week, as governments scrambled to respond to an escalation in the coronavirus pandemic. But amid the mayhem, InnoCare Pharma saw an opportunity to launch its IPO, treating Hong Kong to its largest listing in about two months. Jonathan Breen reports.

  • Optivo follows Longhurst into long end sterling

    Optivo follows Longhurst into long end sterling

    Optivo, the UK housing provider, has mandated banks for a long maturity sterling deal, a day after a compatriot housing association found healthy demand for a similar 23 year note in the currency.

  • The end of the road for roadshows

    The end of the road for roadshows

    The shock of the Covid-19 coronavirus outbreak has forced some rapid thinking among capital markets participants. Almost the first impact has been on travel.

  • Renovate America opens up 2020 PACE pipeline

    Renovate America opens up 2020 PACE pipeline

    Residential Property Assessed Clean Energy (PACE) finance company Renovate America filed an ABS 15-G this week, announcing plans to bring the first deal of 2020. Despite regulatory burdens that have resulted in lower ABS volumes, PACE providers are expecting a steady year, with another 144A deal slated to come as early as April, according to sources at SFVegas 2020 this week.

  • Central American bank woos UK to be new member

    Central American bank woos UK to be new member

    The Central American Bank for Economic Integration is hoping to persuade the UK government to join it as a shareholder, holding out the prospect that UK companies building infrastructure in central America might be able to gain preferential funding on attractive terms now enjoyed by Korean firms.

  • Creditors pull back from frontier markets

    Creditors pull back from frontier markets

    Frontier market bond issuance dropped in 2019, with sovereign issuance at its lowest figure since 2011, amid signs that private-sector creditors are pulling back from riskier countries.

  • China Forestry wraps up $145m loan

    China Forestry wraps up $145m loan

    China Forestry Group, a state-owned company that cultivates and manages forest reserves in the country, has closed its $145m loan with four banks.

  • Alstom to acquire Bombardier’s trains unit

    Alstom to acquire Bombardier’s trains unit

    Alstom, the French maker of trains and railway equipment, has struck a €7.45bn deal to acquire Bombardier’s trains division and will partly finance the trade via a €2bn rights issue later this year or in early 2021.

  • Rose to prune NatWest Markets, take secateurs to rates

    Rose to prune NatWest Markets, take secateurs to rates

    Royal Bank of Scotland — or NatWest Group, as it plans to rebrand itself later this year — is set to cut back risk-weighted assets in the investment bank, particularly in rates. The bank also committed to stricter lending and underwriting criteria for fossil fuel companies.

  • Citic Capital Spac nets $240m from bigger US IPO

    Citic Capital Spac nets $240m from bigger US IPO

    Citic Capital Acquisition Corp has raised $240m from its listing on the New York Stock Exchange. The special purpose acquisition company (Spac) is targeting green and sustainable businesses.

  • EU to discuss candidate for EBRD head

    EU to discuss candidate for EBRD head

    EU member states plan to agree on a common candidate to succeed the UK’s Suma Chakrabarti as president of the European Bank for Reconstruction and Development after his term ends in May. France, Italy and Poland have each put a name forward.

  • BP makes historic pivot to net zero as TCFD nets 1,000 fans

    BP makes historic pivot to net zero as TCFD nets 1,000 fans

    Two milestones were passed on Wednesday, in the financial sector’s recognition of the reality of climate change — BP, the oil and gas group, revealed a new “net zero” strategy, and the Task Force on Climate-Related Financial Disclosures announced it had 1,000 supporters. But how much impact these moves have will depend on future actions.

  • US natural gas exposure hits Natixis

    US natural gas exposure hits Natixis

    Natixis, one of the investment banks that has gone furthest to prioritise greener financing, had to ramp up its provisions for credit loss from US natural gas producers in the fourth quarter, pointing to “structural transformation” in the sector. But it told GlobalCapital that it still saw opportunity in the industry.

  • Calisen finishes first major UK IPO in 2020

    Calisen finishes first major UK IPO in 2020

    The IPO of Calisen Group, the UK operator of smart meters, is due to be priced at 240p a share according to final messages from boorkunners, slightly below the midpoint of the 225p-265p initial range, valuing the company at £1.29bn.

  • Malaysia boosts focus on SDG targets

    Malaysia boosts focus on SDG targets

    Malaysia’s capital markets regulator is looking to position the country as the regional hub for sustainable and responsible investment, launching a new initiative to help corporations meet the United Nations’ sustainable development goals.

  • ECM investors to support Italy's green push

    ECM investors to support Italy's green push

    Italy’s government is seeking help from the equity capital markets to spur the country’s ambitious plans for a greener economy. Sources say the market is ready to support this effort.

  • IFAD, EIB launch project for Cambodia’s rural development

    IFAD, EIB launch project for Cambodia’s rural development

    The International Fund for Agricultural Development, the Government of Cambodia and the European Investment Bank have launched a $124.5m rural development project to boost income and food security in the southeast Asian country.

  • Accentro plans sub-bench bond issue and buy-back

    Accentro plans sub-bench bond issue and buy-back

    Germany's Accentro Real Estate, a socially responsible residential property privatisation company, has mandated banks for a potential euro bond at the same time as launching a tender offer for old notes.

  • Pandemic bond to pay World Bank if coronavirus advances

    Pandemic bond to pay World Bank if coronavirus advances

    As financial markets fretted over the spread of a coronavirus outbreak in China this week, one security was in the firing line more directly than any other. Holders of the World Bank’s pandemic bond will lose principal if the disease spreads by a sufficient amount, writes Jasper Cox.

  • RBS sells sustainable risk transfer deal to BAE pension fund

    RBS sells sustainable risk transfer deal to BAE pension fund

    RBS has sold a risk transfer securitization referencing a book of UK green project finance loans to the BAE Systems pension fund, which was advised by a unit of Macquarie. The deal is the first ESG-rated risk transfer deal in the UK, and also potentially the longest-dated risk transfer deal ever done in the UK, with an average life of eight to nine years.

  • Whole loan sales put solar ABS in the shade

    Whole loan sales put solar ABS in the shade

    Solar loan origination volume is on the rise, but that growth has not been visible in the public ABS market as issuers attribute muted volumes to a surge in demand for higher yielding whole loans.

  • Calisen covered fast as investor meetings pay off

    Calisen covered fast as investor meetings pay off

    The IPO of Calisen, the UK manufacturer of smart energy meters, was covered on its full size on the first day of marketing. Banks on the deal were pleased with the speed of the bookbuild and the quality of investors placing orders.

  • Cabot Square to float ESG infrastructure fund

    Cabot Square to float ESG infrastructure fund

    Cabot Square Alternatives, a new closed end investment fund focused on alternative infrastructure and property assets with an environmental, social and governance angle, has announced its intention to float on the London Stock Exchange.

  • River Green takes ‘first step’ toward greener European SF market

    River Green takes ‘first step’ toward greener European SF market

    The first European CMBS of 2020 was priced well inside initial price thoughts last week but, although the deal was also the first green-marketed CMBS deal in Europe, market participants said it was difficult to tell how much it benefited from its ESG credentials.

  • JP Morgan development unit raises questions

    JP Morgan development unit raises questions

    Seen with cynical eyes, the launch of JP Morgan’s Development Finance Institution (DFI) is simply an attempt to expand its emerging markets footprint — already the largest in the business — by capitalising on two trends: the wave of cash fleeing low yields for EM, and the unassailable momentum of the socially responsible investment movement.

  • JP Morgan barges into development  finance, aiming to do $100bn a year

    JP Morgan barges into development finance, aiming to do $100bn a year

    JP Morgan has created a Development Finance Institution (DFI), which will see its investment bank originate and distribute assets scored on their developmental impact. But specialists have questioned the bank’s ambitions and raised concerns about how this unit will operate.

  • SBB’s €500m hybrid offers yield-starved investors respite

    SBB’s €500m hybrid offers yield-starved investors respite

    Samhällsbyggnadsbolaget i Norden (SBB), the Swedish social infrastructure and residential property investment company, launched a hybrid capital bond on Thursday, offering investors the chance to pick up junk rated paper from an investment grade issuer.

  • SBB lines up hybrid capital in eager market

    SBB lines up hybrid capital in eager market

    Samhällsbyggnadsbolaget i Norden (SBB), the Swedish social infastructure and residential property investment company, has mandated banks to lead a €500m no-grow perpetual non-call 5.25 year hybrid capital bond issue. Bankers off the trade expect it to fly.

  • BIS: climate may strip central banks of power

    BIS: climate may strip central banks of power

    A research paper published on Monday by the Bank for International Settlements sets out how grave the peril of climate change is. It asserts the necessity of central banks grasping this problem as central to their responsibilities — but also admits that they will be unable to “preserve financial stability in the age of climate change”.