The capital markets’ collective consciousness on the subject of Asia-Pacific frontier capital was roused into fascination last year by two deals – one which happened, for Mongolia, and one which didn’t, for the Lao People’s Democratic Republic. Apart from summoning into the minds of DCM bankers the prospect of the fees and kudos to be derived from arranging frontier market transactions, the deals opened up the old topic of whether lower-tier emerging nations should seek t

Ever since Chile issued the first sovereign green bond in Latin America in 2019, the region has been pushing to break new ground on sustainable debt issuance. At the start of last year, Ecuador issued the world’s first sovereign social bond, and then, in September, Mexico issued the first sovereign bond that is linked to the UN’s Sustainable Development Goals. As governments in the region seek to rebuild their economies from the devastating impact of the coronavirus pandemic, social

Ghana's US$3bn bond market entrance at the end of March was twice subscribed and made it the first sub-Saharan African sovereign to issue a Eurobond in US dollars since the onset of the coronavirus pandemic. “This historic bond issuance is a strong signal that investors have confidence in our plan for debt sustainability, economic recovery and growth, and that Ghana remains a pillar of stability," said the country's finance minister, Ken Ofori-Atta, in a statement. "Part of the proceeds s

Green bonds have found a ready home in the Nordics, with the region playing a leading role in the market’s development. Local government financing agencies were early adopters of the instrument as a way of mobilising private finance into reaching a sustainable, climate resilient future. The agencies continue to contribute to the search for transparency, standardisation and reporting. Nordic participation in green bonds was established right from first stirrings. It was in response to speci

The Kangaroo market has remained robust this year, with a distinct environmental, social and corporate governance flavour to much of the debt. “A couple of things were at play earlier this year,” said Craig Johnston, head of DCM syndicate, Australia and New Zealand at Deutsche Bank. “We had a bit more stability in the rates market, yield curve control with government bonds and quantitative easing. Investors were still looking to invest in defensive products but maximise their y

The European Union's move towards the next stage of its borrowing programme comes with significant implications for euro markets, ESG financing and the bloc’s economic and monetary union itself. Triple A rated EU is not new to bonds but, until 2020, its approach to wholesale financing in the capital markets had been limited to relatively small sizes in comparison to the magnitude of the overall EU economy. In 2011, for instance, the last time it accessed the bond markets with any real urge

On March 5, the UK DMO wrapped up its funding programme for fiscal year 2020 with a £500m sukuk offering, ending a record-breaking year with an innovative flourish that will set the tone for the next 12 months. That is because in 2021 the DMO is set to make its debut as a green bond issuer, with two syndications expected in the coming months as it looks to raise a total of £15bn and establish a green curve. The UK DMO hired HSBC and JP Morgan as structuring advisers and they will hel

On January 4, the 10-year Treasury was yielding 0.93%, but by the end of March it had sold off to 1.74% – virtually double the yield of 10 weeks earlier. The bellwether 30-year had gained an extra 80bp of yield to return around 2.43%, while the two-year only sold off by 8bp to 0.19% as the curve steepened dramatically. In fact, it was not the November presidential election as much as the January 5 run-off in Georgia – in which the Republicans managed to commit electoral seppuku and l

France was the only G7 nation to have issued green bonds prior to the onset of the coronavirus crisis, putting it among a mixed group that ranged from Egypt, Fiji, Hong Kong and Nigeria to a number of smaller EU states. Now, however, much of the G7 has endorsed green bonds, with Germany’s €7.5bn debut in September 2020 the pivotal moment. Italy too has issued its first deal in the format, while both Canada and the UK are readying their entries into the market. Moreover, other leading

Moving on: There can be little doubt as to the topic that was front and centre of most everyone’s minds over the past year. The coronavirus pandemic cast a lengthy shadow and dominated all walks of life in ways unthinkable in a pre-Covid world. Governments around the globe implemented various initiatives in attempts to mitigate its effects. And all this came at a tremendous financial cost, leading to fundraising on an unprecedented scale as support packages were put in place.