From ACT Wiki
1. Securities - tap issues.
To issue securities from a tap issue.
- Calculating the 'greenium'? Germany's green bonds will have conventional twins
- "Germany's green debt plan differs from peers such as France and the Netherlands in that each green bond sold will be matched with a conventional twin.
- And whenever an existing green bond is tapped, its twin will be upsized by the same amount...
- 'For the first time, we will be able to exactly see what the (green) premium looks like without having to do any maths, except for a simple "minus" calculation, one yield minus the other,' said Christoph Rieger, head of rates and credit research at Commerzbank in Frankfurt...
- So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market."
- Reuters - Yoruk Bahceli - 2 September 2020
2. Markets - market sectors - opportunities - borrowings.
To raise funds in a market, a market segment, or during a period of opportunity.
- Tapping sukuk market needs strong credit rating
- "Some disadvantages of the sukuk market include the following:
- As the key element for attracting investors is the credit standing of the Obligor, it may be difficult to tap this market for corporates or sovereigns with an inadequate credit rating..."
- Sharia-compliant fixed income capital markets instruments for cross-border transactions - The Treasurer's Handbook
- Investment grade issuers benefit from market access
- "The degree of market access is a key benefit of investment grade borrowers.
- In times of financial turmoil, primary debt markets have historically shown themselves to be relatively volatile with investor funds flowing into and out of the bond markets at short notice...
- When market sentiment subsequently improves, investors invariably look most favourably upon the highest rated issuers which typically reopen the debt markets and provide windows of opportunities for companies to tap often short-lived investor confidence."
- Corporate credit ratings: a quick guide - The Treasurer's Handbook