Denmark saw a 5bp greenium on its inaugural green bond after reaching almost 5x oversubscription. Investors flocked to the DKK5bn (€672m) deal, which priced with a yield of 0.14%, 5bp lower than its conventional 10-year twin. Poul Kobberup, Chief Investment Officer at Danica Pension, told Bloomberg that the size of the greenium showed the market was expecting the bonds to become even more valuable when the Danish central bank conducts further issuances this year. “If you don’t have a strong expectation that it will become even more expensive, it is at least difficult to spot a market argument to buy at minus five,” he said. The central bank has committed to raise at least DKK15bn in green bonds in 2022.
In other sovereign news, Hungary’s debt management agency has sold HUF20bn (€56m) in green bonds at auction. The average yield for the 10-year notes, which saw bids of HUF42.8bn, was 4.74%, 14bp under the secondary market yield for the benchmark.
The head of the Dutch debt management office has ruled out issuing a sustainability-linked bond. At an event held by OMFIF last week, Elvira Eurlings said “governments don’t like unpredictability in interest payment […] If you have a step up or down in coupons, governments don’t like it”. An official at Cyprus’ debt management agency told Reuters that the country could issue a green or sustainability bond of at least €500m next year.
French public agency CADES raised $3bn from its second social bond of the year. Orders for the 10-year bond, which pays a coupon of 2.125%, reached $4.25bn from 53 investors. ESG investors took just 15% of allocation, while 60% went to Asian investors, and 55.8% to central banks.
CTP has raised €700m from a 4-year green bond. The firm, which was the largest green bond issuer in the real estate sector last year, will pay a coupon of 0.875% after orders reached €1.3bn. Meanwhile, real estate investment trust Gecina has raised €500m from a new 11-year green bond, which pays a coupon of 0.865%.
The Nordic Investment Bank has raised DKK2bn (€269m) from its first ever green bond in Danish Kroner, its eighth currency. Books reached DKK2.2bn on the 8-year bond, which pays a coupon of 0.125% and was allocated 48% to pension and insurance companies and 52% to fund managers.
Spain’s Fluidra has signed a dual currency term loan and a €450m revolver, both linked to net zero in scope 1 and 2 emissions and 100% renewables usage by 2027. The term loan consists of a $750m tranche which pays SOFR plus 200bp and a €450m tranche which pays Euribor plus 225bp.
The Central American Bottle Corporation has raised $1.1bn from a sustainability-linked bond. The coupon on the 7-year bond is 5.375%, and is linked to the firm’s GHG emissions and waste to landfill. In other Latin American news, Chilean electricity transmission firm Sociedad de Transmisión Austral raised $390m from a green bond, which pays a coupon of 4% and matures in 2032. Orders reached around $550m.
German brake manufacturer Knorr-Bremse has signed a €750m sustainability-linked loan with a syndicate of banks coordinated by Deutsche Bank and UniCredit. The interest rate on the 5-year loan is linked to the firm’s ISS ESG rating, which currently stands at C+.
€69bn alternatives manager Intermediate Capital Group has raised €500m from its inaugural sustainability-linked bond, with peak orders reaching just over €600m. The bond matures in 2030 and pays a coupon of 2.5%, which will increase by 30bp if ICG is unable to secure science-based targets from half of portfolio companies where it has a board seat and more than 25% ownership by the end of 2027. Proceeds from the bond, which was allocated 65% to fund managers and 37% to UK and Irish investors, will be used for general corporate purposes.
Spanish renewables firm Acciona Energy saw more than €2bn of orders for its second, €500m, green bond. The 10-year bonds pay 1.387%, with 80% allocation to sustainable investors and 45% to investors in Germany and Austria.
Warehouse developer P3 has raised €1bn from its inaugural green bond. The bond was issued in two tranches – a 4-year tranche paying 0.875% and a 7-year tranche paying 1.625%.
Japan’s SoftBank has announced the details of its dual-tranche sustainability bond, due to be issued on Thursday. The telecoms firm is looking to raise ¥15bn (€117m) from each of the two tranches – a 7-year tranche paying 0.51% and a 10-year tranche paying 0.62%. Proceeds from the bond will be used to pay for a satellite network system. The sustainability bond framework received a second party opinion from the Japan Credit Rating Agency.
In other Japanese news, JFE Holdings has announced plans to issue transition bonds in the 2022 financial year, and has appointed Nomura as the structuring agent and a lead manager. The proceeds from the bonds will be spend on renewables, development of “ultra-innovative” steelmaking processes including hydrogen ironmaking and carbon-recycling blast furnaces, manufacturing eco-friendly products and energy conservation and improved efficiency.
Italy’s Webuild has raised €400m from its first sustainability-linked bond. The 4-year bond, which pays a coupon of 3.875%, is linked to Webuild’s commitment to slash its scope 1 and 2 emissions in half by 2025. Orders reached €900m, with significant interest from UK, German and French investors, Webuild said.
Green bond issuance in China is set to cross the $100bn mark in 2022, according to new research from S&P Global. Issuance in the country reached $94.77bn in 2021, more than double that of 2020, but only $35.89bn of this was aligned with international standards. Under Chinese standards issuers may use up to 50% of the proceeds for general corporate usage or repaying existing debt, whereas the international threshold is 5%.
Liquid natural gas shipping firm CoolCo has signed a $570m sustainability-linked loan to acquire eight LNG carriers from parent company Golar, which is spinning it off. Golar did not respond to a request for further information on the deal.
UK broadcaster ITV has signed a £500m sustainability-linked revolver with Barclays Bank, BNP Paribas, Credit Suisse, Mizuho Bank, NatWest and Wells Fargo. The interest rate on the facility, which runs until 2027 is linked to reductions in scope 1, 2 and 3 emissions.
Finland’s OP Corporate Bank has raised €500m from a green bond. The 5.5-year bond was three times oversubscribed, with over half of allocation going to green investors. Eligible expenditures include renewables, green buildings and environmentally sustainable management of living natural resources and land use.
Trailstone Group has signed a €175m revolving credit facility for use by its renewables arm with a group of banks including ING, Rabobank, Tokio Marine and Credit Suisse. The facility was upsized from €150m after significant oversubscription.