EIB taps green bond investors for another €250m, taking total issuance to near €13bn

The European Investment Bank (EIB), the world’s biggest issuer of green bonds, or as it calls them Climate Awareness Bonds (CABs), has sold another €250m worth of the debt, bringing total CAB issuance to almost €13bn to date.

EIB’s latest CAB has a maturity of 10 years and pays a coupon, or interest rate, of 1.25% per annum. The banks that underwrote the euro-denominated bond, were Bank of America, Barclays, Commerzbank, HSBC and Natixis. It has been certified by Oekom, the German sustainability rankings firm, which gives the bond a grade of ‘B+’ or ‘good.’

EIB says it uses the proceeds from its CABs to invest in projects in the renewable energy and energy efficiency spaces.In a statement, Eila Kreivi, Head of Capital Markets at the EIB, said: “Our bank was the first borrower to issue a labelled green bond in 2007 and has since then closed more than 50 green bond transactions in 11 different currencies, many of which in close cooperation with the Luxembourg Stock Exchange.” The EIB’s first CAB in 2007 was listed on the Luxembourg exchange, and this latest one is the 100th green bond traded there.

In related news, Indian renewable energy firm Hero Future Energies has issued that country’s first certified green bond, raising $44m (€39m) in the process. Citing Hero’s Chief Executive, The Times of India said the proceeds would finance the company’s goal of installing up to 2.5GW of renewable capacity in the next few years. Business consultancy and auditor KMPG has certified Hero’s bond as green using criteria developed by the Climate Bonds Initiative, a London-based NGO.