The European Investment Bank (EIB), the long-term lending arm of the European Union, has issued a new 10-year SEK750m (€86.7m) Climate Awareness Bond (CAB).
The EIB said: “The transaction was marked by strong interest from Scandinavian investors (taking over 50% the issue), with Asian and other European accounts also providing significant demand.
“Fund managers and bank treasuries dominated the order book.”
The joint bookrunners were Danske Bank and HSBC. The Luxembourg-listed issue carries a coupon, or interest rate, of 2.75%.
So far this year, the EIB has raised the equivalent of €350m through four Krona-denominated CAB issues. The proceeds are ring-fenced and used for EIB-financed renewable energy and energy efficiency projects. Thebank’s overall lending in these areas has grown to €7bn in 2011.
“The issue underscores EIB’s responsive approach in providing investors with credible climate related products,” said the EIB’s Director General of Finance Bertrand de Mazières.
“Investors are saying yes to green!”
“We are starting to see more and more focus from domestic as well as international investors on climate friendly offerings,” added Laurits Engstrom, Global Head of Local Currency Syndicate at Danske Bank.
“Investors are establishing a firm standpoint and saying yes to green!”
The EIB has issued €1.6bn of Climate Awareness Bonds since they were launched in 2007. Link