On 1st October, the European Investment Bank (EIB), the Bank owned by the European Union Member States, rated Aaa/AAA/AAA (Moody’s / Standard and Poor’s / Fitch), increased the 0.500% Climate Awareness Bond (CAB) 11/2023 by EUR 400 million to bring the total amount outstanding to EUR 1 billion.
The bond completes EIB’s EUR Green Bond curve with a third liquid reference point in an intermediate maturity and takes the total CAB issuance to EUR 10.5 billion. It is EIB’s third CAB distributed in mini-benchmark / ECoop format, which foresees a size of at least EUR 500 million and EUR 250 million minimum re-openings upon actual demand. The EUR 3bn ECoop CAB due 11/2019 is currently the largest Green Bond outstanding, while the EUR 1.25 billion CAB due 2026 is the longest outstanding Green benchmark in the market.
The transaction also draws attention to the imminent publication of EIB’s first semi-annual CAB Newsletter on October 2. The document reports, for the first time, on individual CAB allocations to individual eligible projects, completing the set of information available to investors. Transparency and accountability are a key theme of the Council Conclusions establishing the EU’s position for the UN climate conference in Paris later this year, as adopted by the EU Council on September 18.
The issue and the newsletter reaffirm EIB’s developmental role and its commitment to spur further sustainable growth of the Green Bond market.
Like the other two EUR CABs outstanding, the new issue has been awarded a Sustainability Bond Rating of ‘b+’ from oekom, one of the leading ESG rating agencies worldwide. This is the highest rating so far assigned by this agency to any Green Bond.
Joint Bookrunners for the transaction were Credit Agricole CIB, Rabobank, SG CIB and UniCredit.
Comments on the issue:
Eila Kreivi, Director and Head of Capital Markets Department at the EIB, said:
“Today’s issue and tomorrow’s new report on individual CAB-allocations to projects are contributions to the sustainable growth of the Green Bond market. They provide a clear message: EIB is determined to deliver on the commitment jointly adopted by the Multilateral Development Banks on the occasion of the UN Climate Summit in September 2014.”
Tanguy Claquin, Head of Sustainable Banking, Credit Agricole CIB, said:
“The European Investment Bank demonstrates once again its commitment to the growing Green Bond market by bringing a third Climate Awareness Bond above the €1bn mark. The EIB is undoubtedly a key provider of liquidity for Green Bond funds and dedicated Green Bond portfolio.”
Hans Biemans, Head of Sustainability Markets, Rabobank, said:
“Rabobank is proud to be part of the Climate Awareness Bond program of EIB. EIB is creating awareness for climate change in the investor community and is setting a benchmark for transparency via great impact reporting. With an eye on the upcoming UN Climate Conference COP21 summit in Paris the EIB Climate Awareness Bond program is of great importance. Transparent, efficient and effective climate finance mechanisms and committed investors are key to combat climate change. EIB is leading the way.”
Antonio Sanfilippo, Head of Supras and Agencies Origination, SG CIB, said:
“As a market leader in financing projects tackling climate change worldwide and with over EUR 19bn of its 2014 lending activity allocated to projects with an impact on climate change, EIB Climate Awareness Bonds (CAB) are attracting a clear interest from investors with a focus on green bonds. By increasing its latest Euro CAB to a benchmark size, EIB demonstrates once again its commitment to providing first class quality and liquidity to green bond investors.”
Antonio Keglevich, Head of Green Bond, UniCredit, said:
“It is in challenging times that we need issuers like the European Investment Bank to meet demands of a growing number of SRI investors for tradable and liquid green bonds. With today’s increase the outstanding issues of EIB´s Climate Awareness Bond program is now well over USD 10 bn. UniCredit is happy and excited to be part in the placement of another EUR offering that has reached benchmark size joining the other two EUR denominated CAB´s due 2019 and 2026 respectively.”