Deutsche Kreditbank is preparing to issue an inaugural social covered bond, the leading green bond issuer having today (Wednesday) announced a roadshow for a EUR500m public sector issue, which will be its first benchmark covered bond in three years. Skipton will hit the road to market a euro debut.

Although Deutsche Kreditbank has not yet issued a sustainable covered bond, it began issuing unsecured green bonds in June 2016 to finance renewable energy loans.

The BayernLB subsidiary announced this morning that it has mandated ABN Amro, BayernLB, Commerzbank, Crédit Agricole and DZ to arrange a European roadshow after which a EUR500m no-grow social public sector covered bond with a medium to longer term maturity will follow, subject to market conditions.

The roadshow will start next Tuesday and end the following Monday (24 September), visiting Paris, the Netherlands, Helsinki, Oslo, Vienna, Frankfurt and Munich.

The deal will be Deutsche Kreditbank’s first benchmark covered bond since September 2015.

Deutsche Kreditbank was the first German commercial bank to issue a green bond. Its inaugural EUR500m five year senior unsecured issue was assigned an “A (Excellent)” rating by oekom, the highest such rating that oekom had awarded to a green bond.

Deutsche Kreditbank’s corporate rating of B- from oekom is also one of the joint-highest assigned to any bank by the sustainability rating agency.

Most recent sustainable covered bond issuance has been focussed in the green segment, although issuers such as Caffil and LBBW are working on social programmes. Only one sizeable public sector green or social covered bond has been issued to date, a EUR300m issue for Kommunalkredit Austria in July 2017.

Skipton Building Society announced a mandate today for a European roadshow ahead of a potential inaugural euro benchmark covered bond issue, which will have a five year maturity.

The roadshow will start next Wednesday and is expected to end the following Friday (21 September). Barclays, HSBC, LBBW and UBS have the mandate.

Skipton Building Society issued its first public covered bond in April, a £400m five year FRN.