World Bank

Twenty-three developed countries have promised $100bn a year to poor nations from 2020 to help them cope with climate change. So far, progress towards meeting that promise has been inadequate. It’s time for a proper, fair system so struggling countries get the finance they need, and the rich penny-pinchers are named and shamed.

Dollar pre-funding is unlikely to be a feature of the fourth quarter this year as crushed swap spreads and a lack of direction from the US Federal Reserve force out SSA borrowers.

There was a marked contrast in secondary performance between bonds in the two main funding currencies for SSAs this week. While deals in euros priced last week performed versus swaps and benchmarks, those in dollars mainly widened.

An SSA could bring a euro denominated socially responsible bond next week, joining several others that have mandated for deals, announced roadshows or brought innovative new issues this week.

World Bank broke new ground on Wednesday with the issue of the first bonds designed to reduce greenhouse gas emissions by providing guaranteed carbon credit prices to project managers.

World Bank

A conveyor belt of dollar benchmarks from SSAs passed quality control this week despite tough background conditions. But there are signs issuers are following those in euros by boosting concessions.

The euro market’s strength over dollars is impelling public sector borrowers to line up the currency for rare or even debut visits — and there are strong signs this opportunity could last longer than earlier windows.

World Bank on Wednesday sold the largest dollar benchmark from an SSA since July, as other issuers lined up deals in the currency.

The increasing attractiveness of euros over dollars has led one public sector borrower to mandate for its first ever benchmark in the currency — and more debut issuers could follow.

A supranational has mandated for a dual tranche dollar benchmark, amid signs that issuers are willing to pay up to get size. But Sweden took a different route, pricing a $1bn deal arguably through its curve.

Asian green bonds are finally taking off, with an increase in dealflow and the emergence of new markets set to transform the potential of the asset class. But the investor base remains largely non-specialised, with the green credentials of a deal often of little importance. Christina Khouri reports.