MünchenerHyp is planning to launch the first sustainable covered bond, with the ESG Pfandbrief earmarked for refinancing cooperative housing loans, after the issuer today (Monday) announced plans for a roadshow and solicited a second opinion on the issuance from a sustainability rating agency.

Münchener Hypothekenbank eG has mandated Crédit Agricole, LBBW and WGZ, and plans to begin a roadshow on Thursday ahead of a Eu300m deal.

SSA issuers have led the development of a market for SRI (socially responsible investment) bonds, often with “green” bonds, while corporates and others also have tapped into the growing sector. According to a banker at one of the leads, SRI issuance of some Eu30bn equivalent is expected by year-end, which will be four times the total last year.

MünchenerHyp already has a prime sustainability rating as an issuer, but its planned ESG (environmental, social, governance) Pfandbrief will be the first covered bond issue to carry such a moniker, after the German bank gained a second opinion on the issue from oekom research, which developed criteria for the innovative issue.