SEB

The European Bank for Reconstruction and Development won strong demand from investors as it brought a new type of green bond to the market last Friday. The deal aims to put more focus on the need to adapt to climate change, complementing the work being carried out to mitigate its effects.

Nederlandse Waterschapsbank has selected banks for a €500m 15 year no-grow water bond, in what will be its longest ever maturity for a green bond.

The European Bank for Reconstruction and Development (EBRD) has mandated banks for its first ever climate resilience bond, a new type of socially responsible product that aims to bring more focus on climate adaptation, rather than mitigation. It follows the recent publication of the Climate Resilience Principles by the Climate Bonds Initiative (CBI).

Sweden’s Peab has almost doubled the size of its local currency credit facility, with the construction and civil engineering company releasing a chunk of the financing once an acquisition finalises.

Swedish agency Kommuninvest doubled the size of its June 2023 green bond on Tuesday through a Skr3bn ($309.8m) tap. The tap was issued with a negative yield — rare for the Swedish krona market — and is the issuer’s first negative yielding green print since October 2016.

De Volksbank was three times subscribed for its debut green bond this week, despite not offering much in the way of yield or new issue premium to its investors.

Issuance is starting to resume after the summer break; however, this week a booming public market drew away investor and issuer attention from MTNs. Despite this, a range of established SSA, FIG and corporate borrowers have slipped in, with deals across core, niche and EM currencies.

The hail of issuance in European corporate bonds continued at full pelt on Wednesday as Orange and National Grid joined the fray with multi-tranche deals. Investors and issuers seem equally eager to do business.

Market participants expect more banks will now want to print Kangaroos after investors on a search for yield poured into UBS's additional tier one (AT1) deal on Tuesday. The syndication, which surprised those involved after it managed to shave 75bp off its initial pricing guidance and attract A$4bn ($2.71bn) of orders, suggested a market ripe for a deal spree.

Medicover is on the hunt for at least €100m of funding in the Schuldschein market. The Swedish healthcare company joins a growing number of Nordic borrowers looking to tap the German loans market.

Volumes are growing across the spectrum in the Scandinavian MTN markets, as issuers and bankers return from their summer holidays. Meanwhile, bankers are expecting Scandinavian investors to move further out along the credit curve in response to negative yields as dovish Nordic central bank tones could lead to a bullish Scandinavian market.

One of the smallest supranational issuers has returned to the public markets for the first time since 2017 to make its Norwegian krone debut.