The Banker has
recognised BNP Paribas as Investment Bank of the Year for Social Bonds for
playing a leading role in Covid-19 related issuance throughout the crisis, helping
clients shore up healthcare systems and economies in the wake of the global
pandemic.
The award builds
on the bank’s existing track record in the social bond market, and follows the
Banker’s recognition of BNP Paribas as team
of the month in June for leading the way in Covid-19 response bonds.
“I am delighted and humbled BNP Paribas has been recognised by the
Banker for this award,” comments Delphine Queniart,
Global
Head of Sustainable Finance and Solutions, Global Markets “Social bonds have
come into their element this year, mobilising financial markets in support of the
wider society and generating positive social outcomes. It has been a privilege
to support our clients during these challenging times and to have contributed
to the response to the crisis.”
As well as this, BNP Paribas also won Investment Bank of the Year for Sustainable FIG Financing, further
demonstrating the strength of BNP Paribas’ Sustainable business.
What are social bonds and how have they helped tackle Covid-19?
Social bonds are a specific type of Environmental, Social and Governance (ESG) financing, mostly issued by Sovereigns, Supranationals and Agencies (SSA), where proceeds are earmarked for predefined purposes focused on ‘social’ outcomes. Government agencies and supranational organisations have taken the lead this year by adopting and embracing social bond frameworks so they can raise capital for specific Covid-19-related relief efforts, such as healthcare and economic support.Banks have played a pivotal role in Covid-19 related issuance, responding to the needs of clients in adapting existing social bond frameworks to match issuers’ funding needs with the needs of investors. Throughout the crisis, BNP Paribas led or supported 24 transactions, totalling $13.6 billion and representing 7.67% market share of Covid-19 related bonds. [1]
Are social bonds here to stay?
The crisis has acted as a catalyst to develop the ‘S’ in ESG investments, and has helped scale up sustainable finance as a response to society’s needs at large.Jamie Stirling, Global Head SSA Debt Capital Markets (DCM), BNP Paribas Global Markets, commented, “Distressed markets are the perfect test case for new products and social bonds passed with flying colours. There are now plenty of benchmarks and there’s every reason to expect the social bond market to continue to grow.”
BNP Paribas was also recognised in the following categories, further demonstrating the bank’s strength and leadership in supporting clients through an unprecedented year:
- Investment Bank of the Year for Sustainability-Linked Loans
- Investment Bank of the Year for IPOs
Read more about the Banker Award wins here:
[1] Source: Dealogic – Covid-19 related bonds (Corp/FIG/SSA) as of 17th
Sep 2020, League table, self-led deals excluded.