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IFC on new euro benchmark plans and winning investors

◆ Funding chiefs discuss new euro benchmark programme ◆ IFC left something on table to win euro investors ◆ 'A new January' as July debut timing defended
◆ Debut seven year priced through issuer's dollar curve, leads say ◆ Green label and no-grow size steady IFC through selloff ◆ Rival banker questions wisdom of July inaugural
FIG

Mediocredito Centrale extension becomes July's second Italian public bank issue

◆ Minimal attrition ◆ Follows last week's deal from Italian public issuer Istituto per il Credito Sportivo ◆ Priced flat to fair value

Real estate companies flood euro bond market

◆ Mileway debuts in euros with €1.5bn dual tranche ◆ European Outlet Mall Venture and Vesteda print green bonds ◆ Borrowers return as sector refinancing cycle turns back to unsecured debt
◆ Debut seven year priced through issuer's dollar curve, leads say ◆ Green label and no-grow size steady IFC through selloff ◆ Rival banker questions wisdom of July inaugural
Sub-sections
  • While the Schuldschein market has embraced ESG-linked financing, participants fear a lack of transparency around key performance indicators is an opportunity for greenwashing. The launch of a sustainability-linked deal Zeppelin, which traces its roots to the fabled aviation name, has heightened fears around market practices.
  • Europe’s high grade corporate bond market had a patchy week of issuance, with borrowers dancing around the overhang from the US Federal Reserve meeting and Thursday’s Bank of England equivalent.
  • Rates markets have been well supported in the last few days, but covered bond spreads are still a little shaky with market makers waiting to see the outcome of the next deal from the EU for its €800bn Next Gen programme that is expected to emerge on Monday.
  • CEE
    The Republic of Slovenia debuted in the sustainable bond market this week when it sold its third debt offering of the year. It is only a matter of time, bankers said, before sovereigns across central and eastern Europe embrace the ESG debt markets.
  • Securitization is set to receive a sustainability makeover later in 2021 when the European Banking Authority finalises its mandate. Market participants are asking for better capital treatment to put ABS on a level with covered bonds, but others worry political influence could leave the market behind, writes Tom Brown.
  • FIG
    Market participants are considering whether sustainability-linked bank bonds have a future after the European Banking Authority expressed doubt over the format’s regulatory eligibility this week. The debate remains open, but some ESG bankers predict the focus for innovation could now switch to ‘use of proceeds’ products.