Santander has entered the ESG structured products space with the launch of its first index-linked sustainable investment aimed at retail investors.
The Spanish bank is targeting investors ‘with at least two years’ experience in risk products’ with a three-year 90% protected structured bond linked to the performance of the Eurostoxx 50 ESG-X index. The index is based on the Eurostoxx 50 Index and includes a set of standardised ESG exclusion screens developed by Sustainalytics.
The product developed by Santander Corporate & Investment Banking will be marketed through the bank’s branch network with the proceeds raised used to fund Santander-managed positive social impact projects such as wind and solar farms.
The new structure is part of the bank's global sustainable emissions plan aimed at financing green, social and sustainable activities under its responsible banking initiatives. The bank recently added to its Santander CIB division an ESG advisory team.
The bank issued its first green bond for institutional investors in October 2019 in a €1 billion transaction. Santander is seeking to facilitate mobilisation of €120 billion in green financing by 2025 and €220 billion by 2030.
The Spanish bank has 475 live structures in SRP’s database worth an estimated US$8.5 billion.
Stropro adds Europe ESG strategy
Australia’s wealth platform Stropro is marketing a new structured note linked to a Société Générale indexed strategy as it expands its offering targeted at wholesale investors
The product is linked to the SG European Green Deal index which selects stocks that could potentially benefit from the European Green Deal, a growth strategy put in place by the European Commission aimed at making Europe the first climate-neutral continent.
The index, which was not designed to select companies with the highest environmental score, includes 43 companies expected to benefit from Europe's transition to cleaner energy such as Siemens, Schneider Electric and E.on.
The SG European Green Deal index has returned 38% so far this year and over 52% in 2019.
According to SG Research, some of the investment themes and areas that will benefit from the European Commission’s Green Deal include clean energy (renewable energy generation, wind energy equipment, electrification); sustainable mobility (rail, electric vehicles, hydrogen, biofuel); building and renovation (climate-proofing, energy efficiency); and circular economy (recycling/waste management, reusable and recycling packaging).
VanEck lists Bitcoin ETN on Deutsche Börse
Frankfurt-based asset manager VanEck has announced the listing of the VanEck Vector Bitcoin ETN on Deutsche Börse Xetra. The new ETN tracks the performance of the MVIS CryptoCompare Bitcoin VWAP Close Index, the price of which is directly linked to that of the Bitcoin. The Bitcoin ETN is fully collateralised with the money invested used to buy Bitcoin so that each ETN represents a certain amount of Bitcoin, according to Dominik Poiger, product manager at VanEck.
‘With this new product, investors can participate directly in the performance of the leading cryptocurrency Bitcoin, without having to buy it themselves,’ he said. ‘Instead of requiring a so-called wallet, as is customary with cryptocurrencies, in which Bitcoin is stored separately from the rest of the portfolio on the blockchain, the purchase and storage of ETN is as uncomplicated as trading in shares or ETFs.’
To ensure the security of the deposited Bitcoin, VanEck is working with Bank Frick, a crypto custodian regulated in Liechtenstein, where the Bitcoin are held in cold storage.
Hang Seng Indexes rolls out short/leverage plays
Hang Seng Indexes Company Limited has launched the Hang Seng TECH Index Short Index and Hang Seng TECH Index 2x Leveraged Index.
The two new indices are based on the Hang Seng TECH Index which tracks main technology players listed in Hong Kong. The launch of the two derived indexes respond demand from investors who are looking for short or leveraged exposure to the Hang Seng TECH Index.
The two new indexes are targeted at providers of exchange-traded products (ETP), structured products and derivatives.
The Hang Seng TECH Short Index replicate the payoff of a short of the Hang Seng TECH Index on a daily basis; while the Hang Seng TECH 2x Leveraged Index is linked to the daily movements of the HSTECH with a leverage factor of two. The new indexes are calculated and disseminated in real-time at two-second intervals.
Crédit Agricole CIB joins UK SPA
Crédit Agricole CIB is the UK Structured Products Association’s (UK SPA) newest member. This brings total membership of the UKSPA to 17 firms.
The French bank entered the UK market earlier this year and has been the issuer of 20 structured products worth an estimated US$45.2m marketed in the UK via plan managers.
‘In our view the United Kingdom benefits from one of the most sophisticated structured products markets, which holds promises for expansion, and this membership demonstrates our commitment to develop further our franchise across Europe,’ said Gaël Riboulet, global head of structuring and sales for equity investment solutions at Crédit Agricole CIB.
‘As the structured products industry rises to meet this challenge, helping investors to better tailor the risk return profile of their investment portfolios, it is more important than ever to have a strong and influential trade body able to provide an open forum that helps shape the future of the industry,’ said Zak De Mariveles, chairman of the UK SPA.
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