[Climate Bonds] AAA away! EIB does a EUR350m ($480m) tap of its big 5yr climate awareness bond / World Bank does 4yr BRL465.5 + TLY335.5 (total $369m) green bonds for Japanese uridashi investors

Climate Bonds has posted a new item, ‘AAA away! EIB does a EUR350m ($480m) tap of its big 5yr climate awareness bond / World Bank does 4yr BRL465.5 + TLY335.5 (total $369m) green bonds for Japanese uridashi investors

The AAA-rated European Investment Bank (EIB) has placed a 6th tap of its 5 year EUR Climate Awareness Bond (CAB), the second biggest Green Bond outstanding in any currency (GDF Suez took over the top spot earlier this week).

Interest rate is 1.375%. The EIB press release says that “thanks to secondary performance and strong investor interest, (the tap) could be priced at Mid-Swaps – 4 basis points, 3 basis points tighter than the previous taps”.

That’s called a pricing benefit.

Lead Managers were Citigroup, HSBC, LBBW, Natixis and UniCredit.

Proceeds are earmarked for:

  • renewable energy projects such as wind, hydropower, wave, tidal, solar and geothermal production,
  • energy efficiency projects such as district heating, cogeneration, building insulation, energy loss reduction in transmission and distribution, and equipment replacement with significant energy efficiency improvements.

Funds are ring-fenced in a dedicated liquidity portfolio and, pending disbursements, invested in money market instruments.

For reporting, the EIB does a dedicated Climate Awareness Bond Newsletter.

To date a total of EUR 5.6 billion of Climate Awareness Bonds have been issued, in 9 currencies.

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Then, yesterday in Tokyo, the also AAA-rated World Bank announced a deal with Nomura Securities to distribute World Bank Green Bonds to Japanese retail investors (the “uridashi” market).

Two 4 year bonds have been issued for 465.5 million Brazilian Real, the other for 335.5 million Turkish Lira.

Proceeds from World Bank Green Bonds go to projects that address the challenges of climate change, such as:

  • renewable energy
  • energy efficiency projects
  • new technologies in waste management
  • agriculture that reduce greenhouse gas emissions
  • forest and watershed management
  • infrastructure to prevent climate-related flood damage and build climate resilience.

 

You may view the latest post at http://www.climatebonds.net/2014/05/eib-worldbank/