The EIB has issued two new Climate Awareness Bonds (CAB), answering demand driven by socially responsible investors in both the British and Japanese markets. The former is the Bank’s first ever GBP-denominated CAB. The latter is the first ever JPY green bond from a non-Japanese issuer.
March 2014 has seen the European Investment Bank (EIB) launch two innovative Climate Awareness Bonds (CABs), in response to demand from investors attracted by the environmental characteristics of the bonds. Funds raised through CABs are earmarked by the EIB for projects in renewable energy and energy efficiency.
The Bank’s first ever GBP-denominated CAB is also its largest so far for 2014, at GBP 500m. 76% of investors are based in the UK.
The EIB also issued its first CAB to be denominated in Japanese Yen, also the first such bond in samurai format, which allows non-Japanese companies to launch bonds in Japan under Japanese regulations. The samurai CAB was for an amount of JPY 5bn.
The EIB is the largest issuer of green bonds ytd (total: EUR 2.2bn) and among the largest financiers of projects to tackle climate change, having provided over EUR 19bn worldwide in 2013 alone. Through CABs, investors have the opportunity to contribute to EIB’s Climate Action financing, while enjoying the excellent credit quality of EIB as an issuer.”