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European Investment Bank issues its first climate bond of new year after record 2013

New Swiss issue builds on €1.4bn issuance last year

The European Investment Bank has priced a new CHF350m (€283.5m) Climate Awareness Bond (CAB) – its first of 2014.
It’s the first Climate Awareness Bond denominated in Swiss francs, the EIB said, adding that it was placed with Swiss investors.
The new issue has an annual coupon, or interest rate, of 1.625% and has a final maturity date of February 4 2025. Lead Managers were Barclays, Credit Suisse and Deutsche Bank.
Climate Awareness Bonds raise funds to support EIB lending for renewable energy and energy efficiency.
The EIB said that since inception in 2007, its Climate Awareness Bonds have raised €3.4bn equivalent. In fact, 2013 marked a new high for CAB issuance at €1.4bn.
“Following a record year for Climate Awareness Bond issuance, this first CAB of 2014 underscores EIB’s continued commitment to the green bond market,” said de Mazières, the EIB’s Director General of Finance.
Charlie Berman, chairman of Debt Capital Markets for the European region at Barclays added the new bond “further highlights the continued growth in demand from investors for Socially Responsible instruments in their portfolios”.
The last few months of last year saw a bumper period for green/sustainability bond issues. A €1.4bn green bond issued by French state-controlled utility Électricité de France followed issues from Swedish property company Vasakronan, Bank of America, Norway’s Kommunalbanken, Dutch development bank FMO and the World Bank’s IFC. On top of this, insurance giant Zurich signalled a €1bn appetite for green bonds.
The EIB is among the largest financiers of projects to tackle climate change, having provided more than €13bn worldwide in 2012 alone.