Daimler makes green bond debut

[LONDON] Daimler is offering a debut sale of green bonds just a day after Germany racked up huge demand for its first sale of the environmentally-friendly securities.

The Mercedes Benz automaker is marketing the euro-denominated 10-year notes at 160 to 165 basis points above midswaps, according to a person familiar with the offering, who asked not to be identified because they're not authorised to speak about it. It plans to use the proceeds to develop emission-free vehicles, according to its green bond framework.

The offering is Europe's sixth green deal marketwide this month already, as issuance rebounds from a slump earlier in the year amid the coronavirus-triggered market selloff. Spanish lender Banco de Sabadell and Amsterdam airport operator Royal Schiphol Group joined Germany in offering new green bonds this week, helping push year-to-date sales of socially-responsible bonds to about 105 billion euros (S$169.67 billion) and within sight of 2019's full-year record tally.

Germany's 6.5 billion-euro sale of green bonds on Wednesday was the sovereign's first foray into the market for sustainable investing, with investors bidding for about 33 billion euros of the notes, according to a person with knowledge of the sale.

Banco Bilbao Vizcaya Argentaria, BNP Paribas, Credit Agricole, Commerzbank, Skandinaviska Enskilda Banken and UniCredit are arranging Daimler's sale, which is expected to price later on Thursday.

BLOOMBERG