EBRD confirms imminent $250m “environmental sustainability” bond

Bookrunners for the AAA-rated issue are SEB and Morgan Stanley.

The European Bank for Reconstruction and Development (EBRD) has confirmed that it is set to issue an “environmental sustainability” bond with a volume of $250m (€188.4m), a triple ‘A’ credit rating and a maturity date of April 2018.

A spokesman for the EBRD also said that the bookrunners for the bond were Swedish bank SEB and US investment bank Morgan Stanley, adding that proceeds would be used for sustainable development and energy efficiency projects.

The EBRD will provide further details on the bond in a public statement to be released later today (September 11). Created in 1991, the bank helps support former Communist countries in central and eastern Europe(CEE) and central Asia make the transition to a market economy.

The EBRD’s last environmental sustainability bond, issued in December 2010 to Japanese investors, was a much smaller affair. According to the bank, AU$25m (€18.1m) was to be raised to promote the sustainable projects in the CEE and in central Asia. Prior to this latest bond issue, the bank had an environmental investment portfolio worth €1.9bn.

That portfolio includes investments in renewables (solar photovoltaic, wind power, geothermal and biomass); fuel-efficient public transport; the green renovation of old buildings; and sustainable forest management.