The Sustainable Economy

  • Barclays boosts global SRI team

    Barclays boosts global SRI team

    Barclays is building up sustainability coverage in its investment bank with new positions announced globally on Monday and effective immediately.

  • Housing 21 takes big book as investors keep focus on ESG

    Housing 21 takes big book as investors keep focus on ESG

    Housing 21 became the latest UK housing association to receive a strong reception from investors on Friday as it priced a long-dated sterling tap with a book almost three times covered and a negligible new issue concession.

  • DSSI extension looms amid private sector absence

    DSSI extension looms amid private sector absence

    Expectations are building that the G20 Debt Service Suspension Initiative (DSSI), introduced to alleviate the debt burden of the world’s poorest countries in the face of the coronavirus shock, will be extended this winter.

  • EIB loans Italy €2bn for healthcare

    EIB loans Italy €2bn for healthcare

    Italy will receive a €2bn loan from the European Investment Bank to help cover the reinforcement of its healthcare system required to deal with the coronavirus pandemic.

  • 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.

  • Aperture’s Lahlou: AM fees must change

    Aperture’s Lahlou: AM fees must change

    Anis Lahlou is chief investment officer at Aperture Investors in London. He believes that asset managers must change the way they charge fees to their investors, by only charging them for market-beating performance.

  • Green thinkers keen on new UK state bank

    Green thinkers keen on new UK state bank

    The UK government looks ever more likely to create a new public sector bank focused on green infrastructure. Policy experts welcome the prospect, but there would be many choices to make over the structure and financing of the organisation.

  • ECB tells banks to suspend dividends for the rest of the year

    ECB tells banks to suspend dividends for the rest of the year

    The European Central Bank recommended this week that banks do not pay dividends or buy back shares until the start of 2021 at the earliest. It is also calling for 'extreme moderation' over banker bonuses during the coronavirus pandemic.

  • Manila Water navigates political challenges for debut

    Manila Water navigates political challenges for debut

    Manila Water Co managed to make its international bond debut on Thursday despite facing a number of challenges, including looming questions about its future amid a dispute with the Philippine government.

  • Historic EU budget agreed to muted bond market reaction

    Historic EU budget agreed to muted bond market reaction

    EU leaders ended a marathon 91 hour summit early on Tuesday morning, having agreed a new €1.82tr budget for the bloc, including a much anticipated — and highly contentious — €750bn recovery fund to help member states fight the Covid-19 pandemic. Despite the fierce and protracted debate, market reaction to the news has been muted.

  • SBB taps convertible bond market with €270m mando

    SBB taps convertible bond market with €270m mando

    Swedish social housing manager Samhällsbyggnadsbolaget i Norden (SBB) has issued a Skr2.75bn (€270m) mandatory convertible bond to shore up its balance sheet as it pursues further investment opportunities in the social infrastructure space.

  • EDP kicks off Europe’s wave of M&A rights issues

    EDP kicks off Europe’s wave of M&A rights issues

    Energias de Portugal, Portugal’s largest utility, is raising €1bn through a rights issue to acquire Spain’s Viesgo. Bankers expect it to be the first of a number of acquisition-related cash calls to be launched in Europe.

  • MPs see banks at heart of 'just transition'

    MPs see banks at heart of 'just transition'

    Two groups of UK MPs held an online meeting today to welcome and promote a report into how the banking sector can support a ‘just transition’ to a low carbon economy. The report’s recommendations included creating a National Investment Bank to replace the role played by the European Investment Bank and for the UK to issue a green Gilt.

  • CIP borrows as renewables become cheaper than fossils

    CIP borrows as renewables become cheaper than fossils

    Copenhagen Infrastructure Partners, the Danish renewable energy investor, has signed a €380m green loan to finance a wind farm in Spain, as analysts say renewable energies are now cheaper for consumers than their fossil fuel counterparts in major markets.

  • SB Energy pulls plug on debut bond

    SB Energy pulls plug on debut bond

    Indian solar power company SB Energy pulled its planned dollar bond late on Monday after grappling with a soft market backdrop and investor demand for a juicy premium.

  • EBRD slips behind EIB into green slow lane

    EBRD slips behind EIB into green slow lane

    The European Bank for Reconstruction and Development is launching the second phase of its Green Economy Transition approach and hopes to help policymakers make the recovery from the coronavirus pandemic a green one. But critics say its plans are little more than “business as usual” and that even the activities it classes as green sometimes have weak environmental credentials.

  • EBRD to turn half green, despite opposition from US

    EBRD to turn half green, despite opposition from US

    The European Bank for Reconstruction and Development’s board of directors has approved a proposal to accelerate its transition towards being a green bank, including devoting over 50% of its investments to the green economy by 2025. But it has deferred a decision on when the rest of its activities will be aligned with the Paris Agreement.

  • Markets look for EU to take the lead on green recovery

    Markets look for EU to take the lead on green recovery

    Momentum is growing for the economic recovery from the coronavirus pandemic to have a strong green thrust, as the UK’s mini-Budget and comments by European Central Bank president Christine Lagarde made clear this week. Capital market participants are enthusiastic about the prospect and expect it to further green the markets — but how far the drive goes will ultimately depend on politics, write Mike Turner, Jon Hay and Jasper Cox.

  • Conditionality battle heats up for EU recovery fund

    Conditionality battle heats up for EU recovery fund

    A European Union recovery fund proposal is expected to be presented to a summit of European leaders on July 17-18. Its size is to remain unchanged from a proposed €500bn of grants and €250bn of loans, but the EU budget is likely to be slimmed down, according to sources.

  • Equity investors refocus on ESG after spell of Covid raises

    Equity investors refocus on ESG after spell of Covid raises

    Equity investors are turning their focus away from rescue capital raises and towards other long-term priorities after the initial shock of the Covid-19 outbreak. At the beginning of the year, increased investor scrutiny of environmental, social and governance (ESG) factors was on the tip of all tongues in Europe’s equity capital markets, and it is now featuring heavily in conversations again.

  • Reacting to Wirecard, EM outlook is marred, climate risk is hard

    Reacting to Wirecard, EM outlook is marred, climate risk is hard

    Each week, Keeping Tabs brings you the very best of what we in the GlobalCapital newsroom have found most useful, interesting and informative from around the web. This week: supervising financial reporting, a discordant health and financial picture in emerging markets, and managing climate risk.

  • After a decade, why rush GSE reform now?

    After a decade, why rush GSE reform now?

    It can hardly be said that the process of releasing Fannie Mae and Freddie Mac out of government conservatorship has been rushed. The painstaking process has taken place over the course more than a decade and has consumed the Federal Housing Finance Agency (FHFA) through two presidential administrations. And yet, FHFA capital requirements proposals published this week for the government-sponsored enterprises (GSEs) may not go far enough to ensure their safety and soundness.

  • End of GSE conservatorship nears but CFPB ruling raises new questions

    End of GSE conservatorship nears but CFPB ruling raises new questions

    The end of government control of Fannie Mae and Freddie Mac drew one step closer this week, but a US Supreme Court ruling on the leadership structure of the Consumer Financial Protection Bureau (CFPB) raises the possibility that the course could be reversed under a new government after November's election, write Max Adams and Jennifer Kang.

  • Banca Generali uses securitization hybrid for SME funding

    Banca Generali uses securitization hybrid for SME funding

    Banca Generali has used a non-profit securitization structure to channel more funds to SMEs, offering a model which be rolled out across Italy and further afield. Funds from Italian regions have anchored the riskiest 10% of the new deal, with a central government guarantee wrapping the senior 90%, which can be sold to investors.

  • Solar ABS appeals to investors as Covid impact muted

    Solar ABS appeals to investors as Covid impact muted

    Residential solar finance company Mosaic’s foray into the recently reopened asset-backed securitization market was well received by investors, reaping a multiple-times oversubscribed order book, in part thanks to data that shows the pandemic having a limited impact on solar loans.

  • EIB considers setting climate standards for bank partners

    EIB considers setting climate standards for bank partners

    The European Investment Bank is going through intense discussions — both internally and externally — about its plan to become the EU’s Climate Bank. NGOs are accusing it of “backtracking” and demanding it sets sustainability criteria for the companies and banks it works with, but the EIB insists it is listening to concerns and will reveal more of its plans later this year.

  • Wealth funds urged to end inaction on climate

    Wealth funds urged to end inaction on climate

    Sovereign wealth funds are not using their huge resources to tackle climate change, and are therefore impeding the world's efforts to meet the goals of the Paris agreement, the Organisation for Economic Cooperation and Development has warned.

  • Renewables need some benign financial engineering

    Renewables need some benign financial engineering

    Clean, green energy exists; it is more or less unlimited and it is increasingly cheap to harvest through solar and wind farms. Why are we not converting to renewables wholesale — especially in poor countries, which tend to have abundant sunshine? A significant part of this market failure is financial, and capital markets must solve it.

  • Renewable sector thirsty for capital but EM growth at risk

    Renewable sector thirsty for capital but EM growth at risk

    Hopes that the recovery from the Covid-19 recession can be a green one have been widespread throughout the crisis, and no sector is more important to that aspiration than renewable energy. The industry as a whole has been well buffered from the downturn, but there are points of pain, and the post-pandemic market will be different.

  • Meyer Burger Technology stock surges after strategy change

    Meyer Burger Technology stock surges after strategy change

    Shares in Meyer Burger Technology, the Swiss developer of solar panel technology, surged by more than 26% on Monday morning after the company unveiled plans for a Sfr165m capital increase to accelerate its plans for an expansion its own cell and module production capacity.

  • Fishy business: investors look to make a krill-ing on Aker sale

    Fishy business: investors look to make a krill-ing on Aker sale

    Aker BioMarine, a Norwegian fishing company that harvests krill to be used in nutritional products, has already attracted substantial demand for its listing on Norway’s junior Merkur Market; it will look to list on Norway’s main exchange in 2021.

  • Region Stockholm sells health impact bond

    Region Stockholm sells health impact bond

    Region Stockholm printed a health impact bond on Tuesday. It is an example of a social impact bond. Unlike a vanilla social bond, the repayment and interest on the bond are directly linked to the success of the funded health project.

  • Umicore raises €500m via debut convertible

    Umicore raises €500m via debut convertible

    Belgian materials technology and recycling company Umicore has tapped into growing investor demand for issuers with strong ESG credentials by placing a debut €500m convertible bonds to fund its development and diversify its funding structure.

  • Ninebot to list China’s first CDRs on Star

    Ninebot to list China’s first CDRs on Star

    Ninebot, an electric scooter producer backed by electronics giant Xiaomi Corp, has won approval to raise more than Rmb2bn ($282m) from listing China Depository Receipts on the Star board.

  • People moves in brief

    People moves in brief

    NatWest Markets names CEO and CFO — Natixis appoints new managers for UK and Middle East — Barclays' private capital markets boss leaves