EBRD Issues 600 Mn Euro Green Bonds

The proceeds of EBRD’s bonds are earmarked to support a specific portfolio of environmentally and socially sustainable projects.

The European Bank for Reconstruction and Development (EBRD) has issued a five-year 600 million euro ($685 million) green bond, the bank said in a statement.

This transaction represents EBRD’s inaugural benchmark Green Bond in the EUR market, and its fourth benchmark-sized Green Bond. As one of the pioneers in the Green Bond market, EBRD’s reputation and credibility is firmly established among the Sustainable & Responsible Investment community.

Targeting a size of €500million, EBRD also attracted demand from other high quality Central Bank and Bank Treasury investors, which saw the order book exceed €680million.

Fortunately, EBRD was able to be flexible in its sizing and upsize the transaction to €600million to satisfy demand, while still tightening the pricing, the bank said in the release.

The proceeds of EBRD’s environmental bonds are earmarked to support a specific portfolio of environmentally and socially sustainable projects (the Green Project Portfolio or GPP).

This currently comprises investments in the following 5 areas: Energy Efficiency, Renewable Energy, Water Management, Waste Management and Air Pollution Prevention & Sustainable Transport.

The EBRD first started issuing Green Bonds in 2010 and its Green Project Portfolio includes 379 projects worth a total EUR 4.1bn based on operating assets as at 30 Sep 2018.

The EBRD is one of the largest investors in environmental projects in its countries of operations, having invested over €12.2 billion in energy efficiency, climate change and resource finance under its Sustainable Resource Initiative as at 3Q 2018.