Page 281 - 2019 6th AFIS & ASMMA

But you can also see that the number of countries where we have seen
social or sustainability issuance is far larger than the number of countries
where we have seen green issuance. And South Korea, where Korean
Housing Finance Corporation has actually issued two social bonds in
euros, is an example of this. Session I

I will go to this particular slide, because I think one of the important
aspects for issuers to choose between the senior unsecured market, and
the covered bond market for the green issuance is probably the access
to the green investor base. Where is the green investor base? As you can
see from the first picture, it is primarily with insurance companies or
with investment funds. Now the second picture gives you an indication
of distribution statistics in the senior unsecured market and the covered
In my view, this is why it is no surprise that Germany was one of the bond markets. It nicely illustrates that investors like asset managers and
first jurisdictions where we saw the first green bond issuance. Because insurance companies are a more important investor base for the senior
German covered bond issuers have collateral pools that are comprised of unsecured market than for the covered bond market, where banks are
both commercial real estate assets and residential real estate assets. Green the most important investor base. So naturally to gain access to your
covered bonds issuance against 100% residential green collateral started green investor base, it will probably be easier to do so via the senior
only last year with two issuers from Norway. This year, one additional unsecured market than via a covered bond market.
issue from France was added.

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