By Lisa Kerner
Charlotte, N.C., Aug. 24 The European Investment Bank priced a new 600 million climate awareness bond (CAB), its third, on Aug. 20.
The bond has an annual coupon of 0.5% and a final maturity date of Nov. 15, 2023, according to a news release.
EIBs total CAB issuance now totals 10 billion.
Like the other two euro-denominated CABs outstanding, the new issue has been awarded a Sustainability Bond Rating of b+ from oekom.
The bond is also the banks third CAB distributed in mini-benchmark / ECoop format, which foresees a size of at least 500 million and 250 million minimum re-openings upon actual demand.
According to EIB, the 3 billion ECoop CAB due November 2019 is the largest green bond outstanding, while the 1.25 billion CAB due 2026 is the longest outstanding green benchmark in the market.
The bond generated strong demand from a range of investors, such as BMO Global Asset Management, Actiam, etc., the release stated.
The Netherlands accounted for 27% of distribution, while France accounted for 28%. Asset managers and insurance companies provided more than 37% of distribution by investor type, while banks and central banks / official institutions accounted for 58% and 5%, respectively.
BofA Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB and HSBC acted as joint bookrunners.
EIB has made a strategic commitment to spur further sustainable growth of the green bond market, according to Eila Kreivi, director and dead of capital markets department.
We are building a green curve, which now entails reference points in four-, eight- and 11-years, Kreivi said.
The lender for the European Union is based in Kirchberg, Luxembourg.
| Issuer: | | The European Investment Bank
|
| Issue: | | Climate awareness bond
|
| Amount: | | 600 million
|
| Maturity: | Nov. 15, 2023
|
| Bookrunners: | BofA Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB, HSBC
|
| Coupon: | 0.05%
|
| Price: | 99.888
|
| Reoffer spread: | MS-24 bps
|
| Pricing date: | Aug. 20
|
| Payment date: | Aug. 27
|
| Listing: | Luxembourg
|
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