Commerzbank On The Lookout For The 10-Year Green Bund Syndication

Commerzbank note that "the highlight of the week should be the announcement of the 10y Green Bund today. The previous two German syndications this year were also revealed on Tuesday's during late morning and early afternoon. Before the pricing, which can be expected for tomorrow, indications from a debut green Swedish government bond could be interesting. This 10y deal was announced yesterday and the initial price talk of MS-29bp would translate into a negative green premium of just over one basis point. While it cannot be ruled out that books for the Green Bund will open close to flat, it is very unlikely that it will get priced at a discount to the conventional twin. One willing buyer should be the ECB. In her interview yesterday board member Schnabel said the ECB is already holding "around 20% of the eligible green universe" and the "most important thing" is that there is more issuance, which would lead to higher purchases."