European investors yesterday snapped up a new Euro denominated “Climate Awareness Bond” 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!
Asset managers, insurance companies and pension funds with a socially responsible investment focus led the way to buy 63% of the bond. (e.g. ACTIAM, Aegon, APG, APK Pensionskasse, Banque Syz & co., Gutmann KAG, Natixis AM). Others were: banks 27%, insurance & pension funds 7%, central banks/off Institutions 7%, other European 10%, other outside Europe 3%
The geographic split of investors has Netherlands and Germany leading the way:
- Netherlands 38%
- Germany 28%
- Scandinavia 15%
- France 9%
- Other Europe 10%
