Oil and gas driller Tamarack Valley Energy has raised C$200m (€138m) from a sustainability-linked bond. The 5-year notes pay a coupon of 7.25%, which is linked to the firm’s aim to cut scope 1 and 2 emissions intensity by 39% by 2025 and increase the indigenous proportion of its workforce to 6%. It will pay an additional 75bp on the final two coupons if it fails to hit the emissions target, and 25bp if it fails to hit the indigenous workforce target. Fellow oil and gas firm Diversified Energy has signed an 8-year, $365m, sustainability-linked ABS which pays a coupon of 4.875%, tied to the firm’s Moody’s ESG score, while Abu Dhabi’s state oil producer Abu Dhabi National Oil Co. is in talks with banks over a potential green bond and is also mulling sustainability-linked bonds, according to reports in Bloomberg.
The Philippines is to raise $500m from its inaugural green bond, but is waiting for market conditions to improve before committing to a timetable, the country’s Finance Minister has said. Meanwhile, Pakistan has announced plans to raise $1bn from its first green bond in March.
Moody’s has given Saudi Arabia’s $500bn sovereign wealth fund an A1 rating ahead of a possible debut green bond, the same rating as Saudi Arabia itself. Fitch recently also assigned the fund an A rating. Meanwhile, Riyad Bank, which is 43% owned by the Saudi Government, has hired HSBC, Riyad Capital and Standard Chartered to arrange a dollar sustainability-linked sukuk.
S&P Global has said it expects global issuance of sustainable bonds to pass $1.5trn in 2022, with sustainability-linked bonds the fastest growing market segment. S&P said that there are “major opportunities” for public sector issuers to enter the SLB market, and that such a move would be a major turning point. Around 70% of all KPIs used in SLBs relate to scope 1 and 2 emissions reductions, but S&P said it expected to see KPIs more closely tailored to sector-specific ESG challenges in future.
SEB has raised €1bn from its second green bond, which it said will be used to finance green loans. Orders reached €2bn for the 2027 note from 130 investors, with 58% allocation to asset managers and 31% to Swiss, German and Austrian investors. In its latest green bond research publication, SEB also estimates that the global volume of sustainability-themed bonds and loans will reach $2.3trn this year, with an optimistic target of $2.6trn.
Terna has raised €1bn from Italy’s first ever hybrid green bond. The transmissions systems operator upsized the 2.375% bond – which matures in February 2028 – from an expected €750m off the back of a €3.25bn initial orderbook, which later rose to more than €4bn with participation from “all the major European fixed income investors”. Asset managers and hedge funds took 82% of allocation with a roughly even distribution between French, Italian, Austrian and German, and UK and Irish investors who shared 77% of allocation between them.
Swiss renewables firm Axpo has signed a €2.5bn revolving credit facility with a group of 22 banks including Citi and MUFG, a week after issuing its first sustainability-linked bond. The interest rate on the facility is linked to renewable energy and diversity targets.
Ile-de-France Mobilite raised €1.3bn from a dual tranche green bond. Orders for the first tranche, a 10-year €700m bond paying 0.95%, reached €800m minus lead interest, while the second tranche, a 2-year €600m bond paying 1.275%, saw orders of €650m.
Swedish state-owned bank SBAB Bank has raised €500m from a green bond which was just under three times oversubscribed. Banks took 42% of the bond, which matures in 2027 and pays a coupon of 0.5%, with 49% allocation to Germany, Austria and Switzerland and 13% to the Nordics.
Metals firm Aurubis has raised €350m from a sustainability-linked loan coordinated by Deutsche Bank, LBBW and UniCredit. The interest rate on the loan, which has an optional increase of €150m, is linked to the firm’s EcoVadis sustainability rating, which currently stands at 73. Meanwhile, Imperial Logistics has signed a R1.3bn (€74m) sustainability-linked revolver with Rand Merchant Bank, which it said “utilises the inclusion of an external business sustainability rating [from Ecovadis]”.
Tanzania’s NMB Bank has opened books for a Sh25bn (€9.4m) female empowerment bond. The 3-year bond, which has a greenshoe option for a further Sh15bn, pays a coupon of 8.5% and will be used to extend affordable financing to women-owned or controlled businesses or businesses whose services directly impact women.
Canadian property group Quadreal has raised $500m from its third green bond, which was privately placed with Canadian investors. The 4-year bonds pay a coupon of 2.551%, with proceeds allocated to six categories including green buildings, pollution prevention and renewables.
Norwegian cruise operator Hurtigruten has raised €50m from a 3-year green bond which pays 11%. Danske Bank and DNB acted as leads on the deal.
Argentine power company YPF Luz has raised $63.9m from a green bond, which it will use to finance the construction of a 100MW solar project in San Juan province. The 10-year bonds pay a coupon of 5%.