Société Générale

The Republic of Benin launched its debut SDG (Sustainable Development Goals) bond in its second international offering of the year, following a two year hiatus. Market participants say although deals like Benin’s are getting over the line, concerns are brewing over the sustainability of high yield sovereigns tapping investors so freely.

Covered bond and SSA research analysts at Société Générale are set to leave the bank for other firms later this year.

The Republic of Benin plans to be the first sub-Saharan African sovereign to tap the international bond market twice in 2021. The sovereign this week intends to sell a bond with a sustainability feature, making it one of the first in the region.

Enel smashed a series of records when it came to the dollar market with a $4bn sustainability-linked bond on Wednesday.

Central bank policy is expected to create eye-catching arbitrage funding opportunities for high grade US companies in euros, with tens of billions worth of Reverse Yankee bonds forecast for the back end of this year. Meanwhile, the dollar market remained a strong draw for European companies this week despite rates volatility, after Enel printed the largest ever sustainability-linked bond. Mike Turner reports.

Two public sector borrowers hit the primary euro market on Thursday, with the International Development Association selling its biggest ever bond in the currency and France’s Action Logement Services extending its curve with just its second ever trade.

A2A, the Italian utility, has signed a €500m sustainability-linked revolving credit facility, as the company shifts large parts of its capital structure to key performance indicator-driven pricing.

Chinese securities house Shenwan Hongyuan Securities bagged $500m from its five year bond sale on Wednesday.

The disparity between ratings and spread levels was highlighted in the euro high grade corporate bond market on Wednesday, after German conglomerate JAB Holdings opened books on a deal 40bp wide of lower rated Italian utility A2A, despite the same maturity and size.

A trio of green labelled debuts attracted “slim” demand on Wednesday, as the three senior deals had to compete with a flurry of other trades for a slice of the shrinking pre-summer investor pool.

France’s Action Logement Services (ALS) is preparing to issue its second ever bond, after making its debut in the capital markets in October 2019.

American Honda, the North American subsidiary of the Japanese automotive maker, hit screens with a euro benchmark trade on Tuesday, as corporate bankers reckon central bank tinkering will see a rise in Reverse Yankees at the back end of the year.