London Stock Exchange welcomes RBS celebrating its inaugural social bond issuance

The Chief Financial Officer of the Royal Bank of Scotland this morning opened the market at the London Stock Exchange to mark the issuance of the bank’s inaugural social bond. The bond was issued on Friday 8 November and is the first exclusively Social Bond issued under ICMA’s Social Bond Principles in the UK by any financial institution.

RBS Chief Financial Officer, Katie Murray, commented:
“It is a great privilege to be able to open London Stock Exchange and mark the issuance of our inaugural social bond. We saw strong demand in the market, as institutional investors increasingly target socially useful lending and seek opportunities to track and measure the impact of their investments.

“This was an important milestone for the bank and is the first issuance under our new framework. It paves the way for future issuances in support of our green, social and sustainability ambitions as we build a purpose-led bank that champions the communities we serve and help them to thrive.

CEO of London Stock Exchange plc, Nikhil Rathi, commented:
“We are delighted to welcome RBS’s first social bond to London Stock Exchange’s Sustainable Bond Market and congratulate them on their successful issuance, the proceeds of which will help support SMEs operating in some of the most disadvantaged areas of the UK. London Stock Exchange is a leading centre for green, social and sustainable finance and we are seeing growing demand from investors as they look to incorporate sustainability and ESG considerations into their portfolios.”

Taking data from the Office for National Statistics, the bond is linked to the bank’s ~£2.5bn of existing lending to small and medium-sized enterprises operating in the areas of the UK with the highest levels of unemployment and lowest job creation.

Using a standardised methodology, the bank will provide an impact report to investors at least annually, which will measure the jobs created and retained as a result of the lending. This report will also be published on rbs.com.

It is the first issuance under RBS’s new Framework, which provides a basis for the future issuance of Green, Social or Sustainability Bonds.

The bond raised €750m (~£650m), with a 6NC5 maturity structure, in Senior Unsecured format and the spread was set at MS+100, giving rise to a coupon of 0.75%. Peak demand for the issuance amounted to~€2bn. It will have a rating of Baa2/BBB/A by Moody’s, S&P and Fitch, respectively.

The banks placing the issuance were ABN AMRO, Credit Agricole CIB, ING, NatWest Markets and Nomura. The bond was listed on the London Stock Exchange’s Sustainable Bond Market – one of only a handful of social bonds to be listed in this section to date.

Loans originated within 36 months are eligible for inclusion in a Social Bond portfolio. Each impact report will look back over the proceeding period based on the average composition of our eligible portfolio.

Quick facts

Track
Looking for new and recent issues?

More recent

121.56
London Stock Exchange welcomes HydrogenOne Capital Growth plc to the Premium Segment of the Main Market

HydrogenOne Capital Growth plc, the first London listed hydrogen fund, offers growth potential in clean hydrogen and related technologies. The Company offers investors diversified exposure to private equity and listed hydrogen companies on an international basis. The Company has today listed on the premium segment of London Stock Exchange's main market and qualifies for the Green Economy Mark.<

Learn more
London Stock Exchange welcomes Seplat Energy’s Capital Markets Day

Seplat Energy has today opened London Stock Exchange trading at an official Market Opening ceremony. 

Seplat Energy is a leading independent energy company operating in the prolific Niger Delta area of Nigeria and a leading supplier of processed gas to the domestic market. In 2014 the company completed the first ever dual listing on both the London Stock Exchange (LSEG) and

Learn more
London Stock Exchange welcomes Spinnaker Acquisitions Plc to the Main Market

Spinnaker Acquisitions Plc (“SPAQ”) is a newly established purpose-built cash shell aiming to support businesses and projects in the areas of Sustainability and Energy Transition. With interest in the green economy as keen as it is currently, the objective is to find a business valued at £5–30M with strong profit potential and likely market appetite. 

SPAQ is a company co-founded

Learn more
London Stock Exchange welcomes BIG TECHNOLOGIES PLC to AIM

Big Technologies PLC, the UK-based, remote people monitoring technology company, has today taken the next step in its long-term growth strategy as it is admitted to AIM of London Stock Exchange. It is now trading on AIM, having raised gross proceeds in excess of £200 million, with ticker BIG. At the placing price of 200p per share, Big Technologies PLC has a market capitalisation of £577 millio

Learn more