EIB’s Climate Awareness Bond Increases to €1.5 Billion
14 January 2014: The European Investment Bank (EIB) had its first transaction of 2014 in the European green bond market, a €350 million Climate Awareness Bond (CAB) increase. Due 15 November 2019, the CAB is now worth a record €1.5 billion, the largest climate-themed bond in any currency.
According to EIB, CABs give investors the opportunity to direct their investments to projects that contribute to climate action, while benefiting from the credit quality of EIB as an issuer. CABs have raised €3.7 billion in seven currencies since they were first issued, with 2013 being a record year for CAB issuance. The funds raised are targeted for disbursement to EIB projects related to renewable energy and energy efficiency, including: wind, hydropower, wave, tidal, solar and geothermal production; and district heating, cogeneration, building insulation, and equipment replacement with considerable energy efficiency improvements.
The EIB provides transparency on the destination of CAB proceeds through its annual Corporate Responsibility report and Climate Awareness Bond Newsletter. The Bank leads the European market in financing projects that address global climate change, lending over €13 billion in 2012 alone. [EIB Press Release]