Today, the EIB (AAA) announced that is has re-opened its EUR denominated Climate Awareness Bond for a further EUR350mn ($478mn) tap bringing the total size of the bond to EUR1.5bn or just over $2bn. This makes it the largest climate/green bond currently outstanding. The tap was timed with the publication of the Green Bonds Principles by major banks.
This transaction is the fourth of this line, the first of which was for EUR650mn issued July 2013 with two further taps for EUR250mn later in 2013. The issue carries an annual coupon of 1.375% and matures in November 2019. Lead managers were BoAML, CA-CIB, Commerzbank, DZ Bank, UniCredit.
We're halfway through January and have already seen two climate bonds issued totalling over $800mn - both have been issued by the EIB, confirming our long-held view that the EIB are a champion of this space.
We estimate that 2014 issuance will be double that of the (approximately) $10bn issued in 2013. $824mn down, $19.18bn to go...
