DNB evinces ‘greenium’ in European bank record, Handelsbanken to enter mart (Sustainabonds)

on

Norway’s DNB Boligkreditt issued the biggest green bond from a European bank yesterday (Tuesday), a EUR1.5bn green covered bond debut that provided the clearest evidence yet of a possible “greenium” in the asset class. Sweden’s Handelsbanken today unveiled a new “dark green” framework.

In some asset classes, such as senior unsecured debt, green bonds have been deemed able to in some circumstances achieve tighter pricing than conventional bonds in the primary market – even if the evidence is inconclusive – but in the euro covered bond market – where four green benchmarks had been priced prior to DNB’s trade – green deals have tended to be priced in line with conventional comparables, although compressed spreads resulting from the ECB’s asset purchase programme have been deemed a factor in this. Issuers and market participants have instead pointed to benefits of green bonds such as larger demand and greater momentum in bookbuilding.

- Promotion -

Partner message

In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

Learn more

NordSIP Insights

Most read this week

Should SBI Green Bond Investors be Suspicious?

Stockholm (NordSIP) - The State Bank of India is reported to be preparing to loan INR50 billion (US$670 million) to Adani for investment in...