EIB issues new climate bond with longer tenor (12yr), EUR 500m ($657m), coupon 1.25%, AAA. Takes EIB total climate bond issuance to EUR 6bn!

EIB issues new climate bond with longer tenor (12yr), EUR 500m ($657m), coupon 1.25%, AAA. Takes EIB total climate bond issuance to EUR 6bn!

European investors yesterday snapped up a new Euro denominated “Climate Awareness Bond”(link is external) from EIB. With double the tenor of the EIB’s 2013 6yr issuance this bond provides a longer time horizon for investors that reflects “the duration of renewable energy and energy efficiency projects”.

Issuance amount was EUR 500m with a coupon of 1.25%. The joint bookrunners were Credit Agricole CIB, DZ Bank, Rabobank and Raiffeisen Bank International.

Similar to the structure of the 6yr EUR 2.6bn bond (due in 2019) the new issuance can be re-opened for further tranches of “EUR 500m and EUR 250m” upon demand. Excitingly this issuance shows EIB are starting to build a “green bond curve” with regularly spaced issuances, which is important in building liquidity in the green bond market.

This new addition to the EIB’s portfolio takes their green bond total amount issued to EUR 6bn!

 

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