Green and Social Bonds and Loans

  • Dawn of Schuldschein debuts as TeamViewer launches ESG deal

    Dawn of Schuldschein debuts as TeamViewer launches ESG deal

    German software company TeamViewer launched an inaugural Schuldschein deal on Monday, with margins linked to its ESG performance. Five new borrowers have entered the Schuldschein market so far this year, almost half as many as appeared throughout the whole of 2020.

  • EU sounds out banks for first SURE deal of 2021

    EU sounds out banks for first SURE deal of 2021

    The European Union has sent banks a request for proposals for its first bond of the year under its Support to Mitigate Unemployment Risks in an Emergency (SURE) funding programme.

  • Corporate social bonds to take off, in varied formats

    Corporate social bonds to take off, in varied formats

    Market participants believe 2021 could be the year when social bonds become established as a more thriving and coherent market, after the breakthrough in volume during 2020, when issuance was swelled by the Covid-19 pandemic.

  • Lat Am storms back with Thursday quartet

    Lat Am storms back with Thursday quartet

    Four heavily oversubscribed Latin American new issues fetched tight pricing on Thursday, dispelling the unease felt at the week’s start and putting the region firmly on track to fulfil the predictions of record primary volumes for a January.

  • Colombia to stay local for green debut, plots govvie ETF, social bond

    Colombia tapped international bond markets for the first time since June this week. But its domestic bond market — which is 25% owned by foreign investors — could be in for a busier year, as the sovereign is set to turn to pesos for its debut green bond in July. It is also laying the ground for a social bond and a government bond ETF.

  • SURE programme poses questions for CEE DMOs

    SURE programme poses questions for CEE DMOs

    After a record breaking year for sovereign bond issuance in central and eastern Europe, 2021 could be a different story, thanks to the European Union's vast economic support packages that could reduce the need for many CEE countries to tap international bond markets.

  • People news in brief

    People news in brief

    Natixis promotes DCM bankers — Powell quits IFAD job — NatWest Markets makes Peberdy, Donaldson and Manwaring's positions permanent

  • KfW sells South African rand green bond

    KfW sells South African rand green bond

    KfW printed its first green bond in South African rand this week, reflecting the growth in demand for sustainable products outside of core currencies, according to a funding official at the agency.

  • DNB issues most subscribed covered bond

    DNB issues most subscribed covered bond

    DNB Boligkreditt issued a covered bond on Thursday that became its most oversubscribed covered bond ever, equalling the bank’s biggest ever order book. The deal, secured on green mortgages, was priced through its vanilla curve, clearly demonstrating the demand for covered bonds.

  • SK Hynix dollar bonds spark investor rush

    SK Hynix dollar bonds spark investor rush

    SK Hynix was overwhelmed with investor demand for its triple-tranche dollar deal on Wednesday. It raised $2.5bn, but non-stop demand drove the bonds nearly 20bp tighter in the secondary market on Thursday.

  • Motability gets social bonds humming

    Motability gets social bonds humming

    Motability Operations, the UK non-profit company that leases cars and other vehicles to disabled people, won strong demand for its inaugural social bond on Wednesday, lending weight to the argument that the product will become a more prominent part of the capital markets this year.

  • Spain targets €5bn-€8bn green debut in second half of 2021

    Spain targets €5bn-€8bn green debut in second half of 2021

    Spain is planning to issue its hotly anticipated inaugural green bond in the second half of the year through syndication in what will be the first step in the sovereign’s ambition to become a regular green issuer and build out a curve in the format.

  • Sustainability-linked bonds: a win on several counts

    Sustainability-linked bonds: a win on several counts

    With Asia’s sustainability-linked bond (SLB) market thrown wide open with the first transaction, there is a case to be made for the opportunities offered to both issuers and investors by this nascent asset class.

  • City waits for divergence, or maybe equivalence

    City waits for divergence, or maybe equivalence

    Anyone who thought the culmination of a trade deal between the EU and UK would provide a shining ray of clarity for financial services as to the level of market access between the two has been proved wrong. Little progress on regulatory equivalence decisions has been made, and while this points the way towards divergence, it is still unclear how exactly the UK would go about this.

  • Powell quits as IFAD treasurer

    Powell quits as IFAD treasurer

    Ben Powell is resigning from the position as treasurer of the International Fund for Agricultural Development after 15 months in the job.

  • Triple whammy: KDB squeezes price on dollar deal

    Triple whammy: KDB squeezes price on dollar deal

    Korea Development Bank returned to the bond market on Monday with a three-tranche transaction, marketing one of the notes with a green label. Despite pricing its trade at one of the tightest levels seen among the country’s lenders, the borrower still received strong demand.

  • Chinese banks battle for investor attention

    Chinese banks battle for investor attention

    Agricultural Bank of China and Shanghai Pudong Development Bank Co competed for investor orders on Monday. ABC, the bigger of the two and offering a green bond to the market, got more attention, while SPDB faced an uphill battle.

  • Brazilian trio to extend Lat Am ESG surge

    Brazilian trio to extend Lat Am ESG surge

    Six of the 11 Latin American borrowers to have priced or announced new cross-border bonds so far in 2021 have opted to show off their ESG credentials while doing so — either through dedicating the use of proceeds or by issuing in the more novel sustainability-linked format. Brazil is leading the way, with three further mandates on Monday.

  • CPPIB, EFSF and EIB light up euro SSA long end

    CPPIB, EFSF and EIB light up euro SSA long end

    The first public deals of the year in the long end of the euro curve from the supranational and agency sector arrived on Monday, with the trades receiving huge demand and pricing exceptionally tight to secondary levels.

  • TIM makes sustainability debut

    TIM makes sustainability debut

    TIM, formerly Telecom Italia, had almost €4bn of demand for its debut sustainability bond on Monday, a €1bn eight year. The company put its sustainable financing framework in place last year, an umbrella document allowing it to raise green, social or sustainable finance in bond or loan format.

  • Muted demand for LBBW social SNP

    Muted demand for LBBW social SNP

    LBBW and Banque Fédérative du Crédit Mutuel (BFCM) were met with muted demand on Monday morning as the pair ventured into a busier, yet weaker market in search of senior non-preferred debt.

  • NWD cements ESG credentials with sustainability-linked bond debut

    NWD cements ESG credentials with sustainability-linked bond debut

    New World Development Co printed Asia ex-Japan’s first sustainability-linked bond last week, raising $200m from the transaction. The Hong Kong-based property developer's deputy chief financial officer and its head of sustainability spoke to GlobalCapital Asia on Monday about why the firm ventured into this asset class and the challenges it faced.

  • EIB impresses with Kanga CAB

    EIB impresses with Kanga CAB

    European Investment Bank kicked off a strong first week of issuance with an impressive outing in the Kangaroo market, raising A$1.25bn ($973.2m) with a Climate Awareness Bond.

  • TSKB joins Turkish sustainable bandwagon

    TSKB joins Turkish sustainable bandwagon

    The Industrial Development Bank of Turkey, Turkiye Sinai Kalkinma Bankasi (TSKB), has launched its debut sustainable bond, the latest in a string of Turkish bank issuers that have forayed into the ESG financing market over the last year.

  • Carlyle launches sustainable loan for Siemens gearing carve-out

    Carlyle launches sustainable loan for Siemens gearing carve-out

    Bank of America, Deutsche Bank and UniCredit have launched the buyout funding for Carlyle’s €2bn purchase of Flender, a company making wind turbine gearing, from Siemens. On offer is a €1.045bn term loan 'B' in sustainable format, plus a €150m revolver and €125m guarantee facility.

  • SLB format drives massive book as Klabin prices tight

    SLB format drives massive book as Klabin prices tight

    Latin American DCM bankers hailed Brazilian paper company Klabin’s first sustainability-linked bond (SLB) as an encouraging sign for the ESG debt market in the region, as a huge order book allowed the issuer to tighten by 55bp from initial price thoughts and land well inside its curve.

  • Brazil’s BTG bounds to green

    Brazil’s BTG bounds to green

    Bankers said that Brazilian bank BTG Pactual achieved tighter pricing on its green bond than it would have done on a conventional bond, after it became the first Latin American private sector bank to issue such a benchmark in US markets.

  • Dollar SSA market springs to life

    Dollar SSA market springs to life

    The dollar SSA market leapt into action on Tuesday with an impressive deal from the European Investment Bank. Two more are set to follow on Wednesday, including a 10 year benchmark.

  • Klabin sets three KPIs for Brazil’s second SLB

    Klabin sets three KPIs for Brazil’s second SLB

    Brazil paper company Klabin began calls with investors on Monday as it looks to become the second Brazilian company to sell a sustainability-linked bond. The size of the potential coupon step-up differs depending on which of three sustainability performance indicators Klabin might fail to meet.

  • Italy to enter green bond market in 2021

    Italy to enter green bond market in 2021

    Italy is at an advanced stage with its green bond framework with a highly anticipated debut deal in the format expected to arrive this year, according to the Italian Treasury.

  • France to lead global covered bond issuance in 2021

    France to lead global covered bond issuance in 2021

    Covered bond issuance from France is likely to be the highest from any country next year, reflecting the sheer size of the market, high redemptions and banks' propensity to use covered bonds for market funding rather than for repo funding at the central bank.

  • EU plans law for its own green bonds in 2021

    EU plans law for its own green bonds in 2021

    The European Union will introduce a law early next year to oblige member states to report on how they are spending Next Generation EU funds, to support the bloc’s plan to issue green bonds.

  • The GlobalCapital DCM survey: banks look ahead to restriction-free second half

    Public sector bond issuers surprised on the upside in 2020. In 2021, banks predict them to be big borrowers again — and they expect to make money from them. Twenty-six heads of debt capital markets in the EMEA market participated in Toby Fildes’ annual outlook survey. Only a few firms are expecting to have to cut jobs, but the UK will bear the brunt. On the eve of Brexit taking full effect, Paris, Frankfurt and Dublin look set to be the winning cities. Good news for all: 80% of banks see the last significant Covid restrictions being lifted by the second half of 2021.