Daimler Makes Green Bond Debut Day After Germany Blockbuster
Daimler Makes Green Bond Debut a Day After Germany’s Blockbuster
(Bloomberg) --
Daimler AG 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 received more than 6.5 billion euros ($7.7 billion) of investor orders for its 1 billion euro 10-year notes, according to a person familiar with the offering, who asked not to be identified because they’re not authorized 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 SA and Amsterdam airport operator Royal Schiphol Group NV joined Germany in offering new green bonds this week, helping push year-to-date sales of socially-responsible bonds to about 105 billion euros and within sight of 2019’s full-year record tally.
“We see favorable market conditions,” the company said in an e-mailed reply to Bloomberg News questions, without elaborating further.
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 SA, BNP Paribas SA, Credit Agricole SA, Commerzbank AG, Skandinaviska Enskilda Banken AB and UniCredit SpA are arranging Daimler’s sale, which is expected to price later on Thursday.
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