Green and Social Bonds and Loans

  • Chinese issuers raise $1.14bn from SLB debuts

    Chinese issuers raise $1.14bn from SLB debuts

    Seven Chinese issuers bagged Rmb7.3bn ($1.14bn) from their inaugural sustainability-linked bonds (SLBs) in the onshore market, as part of Beijing’s efforts to meet its ambitious carbon goals.

  • Red Eléctrica and Volvo Treasury prove ‘greenium’ at A ratings

    Red Eléctrica and Volvo Treasury prove ‘greenium’ at A ratings

    The spread benefit of ESG-linked debt was on clear display in Europe’s corporate bond market on Monday. For the second time in days, investors were offered two similar transactions and paid significantly more for the ESG option, in this case a green bond from Red Eléctrica.

  • US, local names crowd into euro corporate market

    US, local names crowd into euro corporate market

    A smattering of European investment grade companies are lining up bond issues, as May continues to bring the turnaround in issuance levels that the market had been hoping for in the run-up to the UK bank holiday at the start of the month.

  • Italian issuers say ‘si grazie’ to HY market

    Italian issuers say ‘si grazie’ to HY market

    Monday brought another strong start to the week for European high yield, with six new bonds announced and other deals, such as EQT’s Cerba healthcare financing, set to close this week. Italian issuers led the way, with bonds for International Design Group, Lutech and Cedacri in the market.

  • EU sounds out banks for final SURE outing of Q2

    EU sounds out banks for final SURE outing of Q2

    The European Union has sent banks a request for proposals (RFP) for what is expected to the final Support to mitigate Unemployment Risks in an Emergency (SURE) transaction of the second quarter.

  • Symrise pledges margin improvements to charity in SLL debut

    Symrise pledges margin improvements to charity in SLL debut

    Symrise, a German flavour and fragrance producer, has signed a €500m debut sustainability-linked loan, with the company one of the few to disclose that any margin change because of hitting key performance indicators will be paid directly to charity.

  • EQT mixes CO2 and diversity in first SLB from private equity

    EQT mixes CO2 and diversity in first SLB from private equity

    EQT achieved a strong response from investors on Friday when it launched the first sustainability-linked bond from a private equity firm, and only the second from a financial company. The €500m deal is tied to greenhouse gas emission cuts and gender diversity metrics.

  • Ceconomy gets ESG loan to repay crisis funding

    Ceconomy gets ESG loan to repay crisis funding

    Ceconomy, a German consumer electronics company, has signed a €1.06bn revolver linked to sustainability metrics, becoming the latest corporate to repay state support loans taken out during the worst of the coronavirus pandemic.

  • LatAm primary charges on with ‘incredible’ deals

    LatAm primary charges on with ‘incredible’ deals

    Four Latin America and Caribbean companies sold new issues in the dollar market at very tight looking levels on Thursday, as investors continue to feel pressure to put to cash to work amid extremely high liquidity.

  • Dollar bond market breaks out in green spots

    Dollar bond market breaks out in green spots

    Green bonds took centre stage in the US corporate bond market this week, as issuance began to mount again after the recess for earnings blackouts. No less than three deals paired green and conventional tranches.

  • Learning by doing: SLBs to surge, though role still needs defining

    Learning by doing: SLBs to surge, though role still needs defining

    Sustainability-linked bonds are the hot capital markets product of 2021, and are developing so fast that even specialists in the field find it hard to keep up with the pace. The market has benefited from the very early definition of guiding principles last year but, writes Jon Hay, big questions remain about what the instrument is for and how it should be governed.

  • Chile leans on foreign buyers with $2bn deal

    Chile leans on foreign buyers with $2bn deal

    Chile raised $2bn in dollar markets on its fourth international bond market outing of the year on Tuesday, achieving slim new issue concessions even as volatility in domestic markets is leading the sovereign to lean more heavily on external funding sources.

  • IG corp buyers show preference for ESG and short maturities

    IG corp buyers show preference for ESG and short maturities

    The demand for sustainability-linked bonds was made clear on Thursday, as French minerals company Imerys’s deal commanded more than double the demand of Swedish property firm Sagax’s conventional trade, despite sharing big similarities.

  • Investors drive fledgling green T2 mart

    Investors drive fledgling green T2 mart

    Bank of Ireland and Westpac found strong demand for debut green tier two deals this week, as investors flock to this growing segment of the ESG market in search of higher returns.

  • LimakPort lining up dollar bond as Turkey holds rates steady

    The new governor of Turkey’s central bank, Şahap Kavcıoğlu, kept rates unchanged at his second monetary policy meeting since taking office. Although a rate cut was unlikely, the decision bodes well for next week’s planned dollar bond issue by LimakPort.

  • 'Greenium' exists for IG corps even at sub-benchmark sizes

    'Greenium' exists for IG corps even at sub-benchmark sizes

    The demand for sustainability-linked bonds was laid bare on Thursday, as French minerals company Imerys’s SLB commanded more than double the demand of Swedish property firm Sagax’s conventional trade, despite both deals sharing major similarities.

  • Trinity prices inaugural ESG-linked railcar bonds

    Trinity prices inaugural ESG-linked railcar bonds

    Trinity Industries has priced its first railcar ABS transaction designated as a green bond, from a recently established green ABS framework. As one of the very few labelled US ABS deals outside of solar or PACE, the Trinity transaction enjoyed high demand from traditional and non-ABS investors.

  • Turkey holds fire on rates as LimakPort lines up to print

    Turkey holds fire on rates as LimakPort lines up to print

    The new Turkish central bank governor Sahap Kavcioglu kept rates unchanged at his second monetary policy meeting since taking office. Although a rate cut was unlikely, the decision bodes well for Turkish port operator LimakPort's planned dollar bond next week.

  • Social loans? What about social life?

    I was talking to a few loans bankers this week and was surprised when they revealed privately that they had very little interest in social loans. That gave me an idea.

  • Shinhan sells capital bond for Covid relief

    Shinhan sells capital bond for Covid relief

    Shinhan Financial Group sold a Basel III-compliant additional tier one bond with a sustainability label this week, funnelling some of the proceeds from the $500m trade to Covid-19 relief efforts.

  • Chile notches $2bn on fourth helping of 2021

    Chile notches $2bn on fourth helping of 2021

    The Republic of Chile, until recently a rare issuer in international bond markets, sold its fourth cross-border bond of 2021 on Tuesday, becoming the fourth Latin America sovereign of the year to take advantage of a more liquid 20 year US Treasury to price a benchmark at that maturity.

  • IG corporate market roars with May mandates

    IG corporate market roars with May mandates

    Europe’s high grade corporate bond market saw an abundance of mandates on Tuesday, suggesting that the bullish hopes from some corners of the banking world for May’s primary market might be fulfilled.

  • Pfandbrief market takes crisis and regulation in its stride

    Pfandbrief market takes crisis and regulation in its stride

    The Pfandbrief market is in the middle of a tumultuous year which includes not only the adoption of the EU's Covered Bond Directive but also digesting the bloc's Taxonomy for Sustainable Activities. Of course, this is all happening against the backdrop of the coronavirus pandemic and lockdowns, which have hit the commercial real estate market that underpins much of the product. Jens Tolckmitt, chief executive of the Association of German Pfandbriefbanks (vdp), spoke to GlobalCapital about how the market has coped.

  • Erste plans debut sustainability bond

    Erste plans debut sustainability bond

    Erste Group Bank is lining up its first sustainability bond, as it looks to take advantage of a quiet period for new issuance and a recent back-up in rates.

  • Germany begins marketing for 30 year green bond

    Germany begins marketing for 30 year green bond

    Germany’s Finanzagentur is holding calls with investors this week to sound out interest for a planned syndication of a 30 year green bond, the sovereign’s third and longest deal in the format.

  • Vesta plots SLB as recent LatAm deals slide

    Vesta plots SLB as recent LatAm deals slide

    Mexican industrial parks operator Corporación Inmobiliaria Vesta began investor calls on Monday as it looks to become the latest Latin American issuer to join the sustainability-linked bond (SLB) club. Though bankers continue to see LatAm companies obtaining pricing benefits from SLBs, a handful of recent deals are trading below re-offer in secondary.

  • Eurobank eyes green bonds

    Eurobank eyes green bonds

    Following its return to the senior bond market earlier this week, Greece’s Eurobank is working towards launching a green bond programme and refinancing its government-held tier two capital securities.

  • Vestas makes debut in sustainability-linked loans

    Vestas makes debut in sustainability-linked loans

    Vestas, the Danish wind turbine maker, has signed a €2bn-equivalent facility linked to key performance indicators around sustainability. It was the first time the borrower has structured bank debt in this way.