The European Investment Bank (EIB), the EU Bank , has increased the Climate Awareness Bond by 400 million euros last week. The tap reinforces the benchmark character of the issue, which, now at 3 billion euros, continues to be the largest Green Bond outstanding in any currency. The increase carries a coupon of 1.375% and was priced in line with the existing EIB Coop curve at MS-30. It constitutes EIB’s first issue ever priced at negative rates.
The transaction came on the same day as EIB’s Annual Press Conference in Brussels, where President Hoyer announced the key results achieved in 2014. Last year, the EIB dedicated over 19 billion euros, or 25% of its total lending activity, to climate action. Joint Bookrunners for the transaction were Crédit Agricole CIB, Credit Suisse, Nomura and Standard Chartered. EIB is rated Aaa/AAA/AAA by Moody’s , Standard and Poor’s and Fitch.
Eila Kreivi, Director, Head of Capital Markets, EIB, said: “Today’s issue underlines the strong lending activity of the EIB in favour of climate action, and reinforces our support for the sustainable development of the Green Bond market. At a size of 3 billion euros, CAB 2019 has attained benchmark status in its own right, highlighting the popularity of this bond.”
Massimo Antonelli, Director SSA DCM, Credit Suisse, said: “With today’s EUR 400m increase of the CAB Nov-19, the European Investment Bank was able to reinforce its commitment to lending activities in support of climate action, in line with its policy. The EUR 3bn CAB Nov-19 is now the largest outstanding Green Bond in any currency and with this transaction the European Investment Bank was able to achieve for the first time a negative re-offer yield.”
Timo Zwez, Head of Sovereigns, Supranationals and Agencies Europe, Standard Chartered, said: “With another record year in green bond issuance behind us EIB continues to lead this segment in 2015 once more with this EUR 400m tap. Not only is this bond offering EIB a fantastic funding opportunity with pricing at a negative yield but also they manage to increase the issue size to a liquid size of EUR 3bn. For SCB this is another great Green Bond Issuance highlighting our commitment to Climate Awareness Bonds (CAB) of EIB as well as the Green Bond Principles and the Climate Bonds Initiative.”