BPCE last week became the latest bank to jump aboard the Green bond bandwagon. Viewed by many as a mere marketing ploy, it is a market that is nonetheless set to grow as banks boost their lending in the sector. The French lender comfortably covered a small €300m seven-year deal via sole lead Natixis, pricing around 10bp inside initial talk, at swaps plus 75bp. Orders reached €1.2bn. The Green and sustainable bond market has been relatively slow to take off. European lenders have issued less than €4bn this year. But with four European banks having issued in the last three weeks, supply is picking up. "What they're doing is issuing demonstration bonds, positioning themselves to win clients and win Green mandates. And they know there is a lot of interest on the buyside. But it is also part of a bigger buzz," said Sean Kidney, CEO and co-founder of Climate Bonds Initiative.
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