Green and Social Bonds and Loans

  • Investors push back on aggressive bond pricing

    Investors push back on aggressive bond pricing

    A number of Chinese high yield borrowers that hit the dollar bond market this week have seen mixed responses to their notes in secondary trading, which bankers say is a sign of changing market sentiment and investor response.

  • Senior trio price tightly in euros

    Senior trio price tightly in euros

    A trio of senior borrowers paid minimal new issue premiums in euros this week as Swedbank and AIB Group tapped a sweet spot of demand for bail-inable debt, while Macquarie got attractive pricing compared to its dollar curve.

  • Mehiläinen boosts refi size to roll up existing debt

    Mehiläinen boosts refi size to roll up existing debt

    Finnish healthcare provider Mehiläinen increased the size of its ESG-linked refi loan from €300m to €1.06bn, refinancing not just the second lien loan, as originally intended, but the company’s entire first lien capital structure. Leads HSBC and Jefferies also tightened the margin range from launch levels.

  • Sucafina brews up bigger sustainability loan

    Sucafina brews up bigger sustainability loan

    Sucafina, a Swiss coffee company, has signed a $500m sustainability-linked borrowing base facility, as a small wave of deals from the German speaking region come to fruition.

  • Asia’s ESG bond market surges but calls for more ‘governance’ focus

    Asia’s ESG bond market surges but calls for more ‘governance’ focus

    A group of nine issuers from Asia sold green or sustainability dollar bonds this week, propelling volumes to new highs. A large part of the debt business in the region is still focused on green and the environment, but there is growing urgency to pay more attention to governance standards. Morgan Davis reports.

  • Lenders push back on Cerba's ESG conditions

    Lenders push back on Cerba's ESG conditions

    Diagnostics firm Cerba Healthcare has made the key performance indicators on its sustainability-linked loan more ambitious after talks with leveraged loan investors on its financing for its buyout by Swedish private equity firm EQT.

  • China property bond flurry continues

    China property bond flurry continues

    The rapid pace of new dollar bond issuance from Chinese property companies continued from Monday into Tuesday as four more borrowers joined the fray.

  • AlpInvest bags $650m SLL in first for funds-of-funds

    AlpInvest bags $650m SLL in first for funds-of-funds

    The current of interest in sustainability-linked finance entered a new district of the capital markets this week — private equity funds-of-funds. AlpInvest Partners, one of the biggest managers in the market, has signed a $650m facility tied to its environmental, social and governance investment practices. But the deal raises the question of the role of transparency in such financings.

  • Corporates must be more transparent on sustainability-linked loans

    Corporates must be more transparent on sustainability-linked loans

    By being allowed to hide the details of sustainability targets and incentives, Europe’s investment grade corporations are being given an easy ride when it comes to sustainability-linked loans. They must be more open if the market is to remain credible.

  • Turkish borrowers plough on in debt markets against persistent instability

    Turkish borrowers plough on in debt markets against persistent instability

    LimakPort, the Turkish international port, entered the debt market on Tuesday, while Turk Eximbank has successfully secured a dollar syndicated loan facility. Turkish issuers are demonstrating resilience, market participants say, amid the heightened levels of domestic and political volatility in the last three months.

  • Banks hold off issuing amid volatility in equities and rates

    Banks hold off issuing amid volatility in equities and rates

    The financial institutions bond market in euros was on hold on Tuesday, as European issuers saw no reason to rush into doing deals while global equities were selling off and interest rates were being buffeted by expectations of inflation.

  • JSW Hydro makes a splash with green bond

    JSW Hydro makes a splash with green bond

    JSW Hydro Energy, a subsidiary of Indian power company JSW Energy, sold its first international bond this week, taking $707m from the green transaction.

  • 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.

  • Uruguay mandates for pesos, dollars as SLB plans evolve

    Uruguay mandates for pesos, dollars as SLB plans evolve

    Uruguay began investor calls on Monday ahead of a proposed dollar and global local currency bond issue. The marketing effort came as the government continues to take steps towards issuing what would be the first sustainability-linked bond from any sovereign — though this week’s expected deal will not have ESG characteristics.

  • 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 this week. 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 SLL debut margin changes to charity

    Symrise pledges SLL debut margin changes to charity

    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 due to 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.