Solid conditions extend corporate ESG primary push

摘要

High-grade corporate ESG deals stood out last week as borrowers sought to exploit the tightening spreads during execution in a market that was already seeing large price revisions. Of the four ESG use-of-proceeds bond issuers that executed deals last week, two were from more carbon-intensive industries but still garnered notable support from the European investor base. Finnish company STORA ENSC (Baa3/-/BBB-) is active in packaging and forest products and was selling its first euro green bond, alongside inaugural green issuer AEROPORTI DI ROMA, Rome's airport operator (Baa3/BB+/BBB-). "Some of the more carbon-intensive businesses are more open to green or ESG now, and the other side of that is that investors are showing more interest," said a banker. Investors were happy to take down Stora Enso's €500m no-grow 10-year. Orders peaked at €5.75bn, giving leads the ability to cut the spread to swaps plus 95bp, from 140bp-150bp.