EIB and SEB launch SEK denominated Climate Awareness bond

The European Investment Bank has sold SEK500m worth of Climate Awareness bonds via a tap to boost its funding in this area.

The funds raised are used to support lending from the EIB for renewable energy and energy efficiency projects. The Bank put €13bn into climate change projects in 2012 alone, making it one of the biggest investors in this area.

The tap raised particular interest in the Nordic region, with investors there some 40% of the issue. Other European investors took a similar amount, with Asian investors accounting for the remaining 20% of the issue.

Banks accounted for 40% of buyers, and fund managers the remaining 60%.

Christopher Flensborg, Head of Sustainable Products and Product Development at SEB – joint bookrunner along with Bank of America Merrill Lynch – said: “Following the recent strong demand in USD it is nice to see interest in European currencies. Once more EIB managed to attract new investors to the Green Bond market with their climate awareness bonds and there are clear signs of asset managers now joining the asset owners in climate investments.”

Bertrand de Mazières, director general of Finance, at the EIB, said: “EIB’s first Climate Awareness Bond transaction of the year asserted the sustained investor appetite for climate-flavoured products in the SEK market. The EIB reaffirmed its role as a regular issuer in this format, addressing demand from European and Asian investors.”


Summary Terms and Conditions for the new bond issue: 
Issue AmountSEK 500mm to new amount 2.1bn
Pricing Date19-Apr-13
Payment Date30-Apr-13
Maturity Date23-Apr-19
Issue Price105.625
Re-offer SpreadMS+26 bps or SGB 4.25% due 12 March 19 +80bps
Format:Under the EIB’s Debt Issuance Programme
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