EIB’s New EUR 5 Billion Climate Bond Surpasses EUR 100 Billion in Green Funding

EIB’s new EUR 5 billion Climate Awareness Bond is over seven times oversubscribed. With this issuance, the European Investment Bank (EIB) surpasses EUR 100 billion in green and sustainability bonds. EIB continues to lead the market by aligning its bonds with evolving EU sustainable finance legislation.

The European Investment Bank (EIB) has made another significant stride in sustainability by issuing a new EUR 5 billion Climate Awareness Euro Area Reference Note (EARN). This 10-year bond, maturing on September 4, 2034, offers an annual coupon of 2.625% and was priced at 98.937%. The issuance, which was over seven times oversubscribed, underscores the EIB’s key position in the green bond market.

Announced on August 27 and priced on August 28, the bond attracted overwhelming demand, closing with over EUR 34.5 billion in orders from more than 280 investors. This high demand enabled the EIB to set the bond size at EUR 5 billion, reflecting the strong appetite for sustainable investment opportunities.

With this issuance, the EIB’s cumulative Climate and Sustainability Awareness Bonds have now exceeded EUR 100 billion. EIB President Nadia Calviño remarked, “The 100 billion Euros milestone we celebrate today represents the remarkable growth of the Sustainable Bond Market since the EIB pioneered this issuance in 2007. Capital markets are vital to the green transition towards a sustainable economy, and the EIB will continue to support this transition through its financing and borrowing activities.”

As the largest multilateral development bank issuer of green and sustainability bonds, the EIB remains dedicated to advancing sustainable finance. According to the EIB, “Use-of-proceeds green, social, and sustainability bonds enhance the accountability of sustainable finance.” Since 2018, the EIB has aligned its Climate- and Sustainability Awareness Bonds with the EU Taxonomy, demonstrating its commitment to advancing Europe’s sustainable finance framework.

This bond issuance represents not only a financial achievement but also a significant milestone in the EIB’s ongoing efforts to promote sustainable economic development. By aligning its activities with the EU’s sustainable finance legislation, the EIB continues to set the standard for how green bonds can contribute to a more sustainable economy.