The European Investment Bank (EIB), the development institution owned by the EU Member States, rated Aaa/AAA/AAA (Moody’s / Standard and Poor’s / Fitch), issued a new EUR 500m Climate Awareness Bond (CAB) or so called Green Bond in late September.
With this new transaction, EIB continues to spur the sustainable growth of the Green Bond market, by giving long-term investors the opportunity to own a 21-year Green Bond in EUR for the first time. Today’s CAB 37 is the fourth benchmark on EIB’s EUR Green Bond curve, a meaningful complement to its existing 3-, 7- and 10-year reference lines.
The 21-year issue carries an annual coupon of 0.5%, and has been priced in line with the outstanding EIB ECoop curve at a reoffer yield of mid swaps -10bp, equivalent to 38.9 bps over the 4% Bund Jan-37.
EIB continues to benefit from a strong European following in the CAB programme with 25% from Germany, 21% from France and 18% from Netherlands.
EIB’s total Green Bond issuance amounts to 15 billion euros across 11 currencies of which 7.6 billion euros denominated in EUR.