Multi-tranche trend underscores ESG debt momentum

摘要

Mounting momentum in ESG debt is driving a European take-off in the US practice of issuers including green or sustainable bonds within multi-tranche offerings. The approach seeks to capture greeniums while not limiting borrowing to the size of eligible ESC expenditures. "The market has become very accepting of labelling one tranche and not the other," said Matt Thomas, head of corporate DCM EMEA at Barclays. "Investors can choose between the two or invest in both." With deals already encompassing senior, reverse Yankee and hybrid corporate debt, plus a sovereign inaugural, more names seem likely to join the trend as green and sustainable volumes rise. "Because we're seeing increasing ESG issuance, this is becoming much more embedded in the normal way of accessing the market," said an ESG head at a US bank.