- At €17 billion, the deal is the biggest quantity ever borrowed by the European Commission
- The European Commission’s first Covid-related bond
Linklaters has suggested the underwriters on the largest-ever social bond issued by the European Commission (‘the Commission’). At €17 billion, the Commission’s inaugural Covid-related social bond is the biggest ever bond issuance under the EU SURE programme – the European instrument for momentary Support to mitigate Unemployment Risks in an Emergency.
The transaction additionally recorded the largest-ever order e book for a bond sale throughout any sector, with demand reaching €233bn – almost 14 occasions the quantity the Commission aimed to lift from the issuance.
Melinda Perera, lead Partner, Capital Markets and Banking Linklaters LLP Luxembourg stated:
“The issuance of this unprecedented social bond and the response it has received from the market is further proof of the growing demand from investors to align their investment strategies to a more socially sustainable future, particularly in these extraordinary times.”
The Linklaters group was led by Melinda Perera (Partner), Delphine Horn (Consultant), Laura Mbo (Associate) from the Luxembourg Capital Markets and Banking group and included Johnny Davidson(Managing Associate) from the London Capital Markets group.
Linklaters has been on the forefront of the expansion within the inexperienced bonds market, advising on among the main choices in recent times, Russian Railways (Russia and the Commonwealth of Independent States’ first), Link Real Estate Investment Trust (the world’s first inexperienced convertible bond in the actual property sector), the Government of Hong Kong (its inaugural US1bn Green Bond, listed on each the London Stock Exchange and the Hong Kong Stock Exchange), Egyptian Ministry of Finance (the primary sovereign inexperienced bond within the Middle East and Africa area, listed on the London Stock Exchange (LSE) and admitted to the LSE’s devoted Sustainable Bond Market) and DTEK Renewables (the primary ever inexperienced bond issuance by a Ukrainian issuer).
Linklaters has additionally led the event of the related sustainability-linked bond market, advising on latest points by Suzano (the primary bond of its type to be aligned with the ICMA’s sustainability-linked rules printed in June 2020), Novartis (the primary sustainability-linked bond to include social moderately than environmental targets and the primary providing of sustainability-linked bonds within the healthcare sector), ENEL (the primary sustainability-linked bond in Europe) and Europe’s first sovereign sustainability bond (the €1.5bn 0.0% sustainability bonds due in 2032 was issued by the Grand Duchy of Luxembourg and listed on the Luxembourg Stock Exchange).
Linklaters’ sustainable (inexperienced and social) bond apply and experience spans its European, North American and Asian workplaces and attracts on the help of the agency’s market-leading company, atmosphere and local weather change, vitality and monetary regulation practices.