- EIB’s CAB 2026 increased to EUR 1.25 bn
- 2015 Green Bond Principles (“GBP”) to be presented in London on 27/3
- Special CAB-Newsletter of the EIB to be presented in London on 27/3
- Total CAB issuance approaching EUR 8.5bn
Today, the European Investment Bank (EIB), the EU Bank, rated Aaa/AAA/AAA (Moody’s / Standard and Poor’s / Fitch), increased the 1.25% Climate Awareness Bond (CAB) 11/2026 by EUR 250m. The issue carries an annual coupon of 1.250%, has the final maturity date of 13 November 2026 and has been priced with the existing EIB ECoop curve at MS-32bps.
The tap reinforces the reference status of the longest green benchmark outstanding and draws market attention to the imminent publication of a new edition of the Green Bond Principles in London on March 27. The GBP are voluntary process guidelines that provide a reference to the market in the areas of use of proceeds, evaluation and selection of projects, management of proceeds, reporting, and assurance. They reflect consensus among a representative group of issuers, investors and intermediaries coordinated by the International Capital Market Association, which acts as Secretariat.
The EIB, an active member of the GBP Executive Committee, plans to publish a special edition of its annual CAB-Newsletter on the same date, with extensive disclosure of EIB’s practice in each of the relevant areas.
Comments on the tap: Issuer:
Eila Kreivi, Director and Head of Capital Markets, EIB, said: “Today’s issue continues EIB’s action in support of the sustainable development of the Green Bond market. It strengthens the benchmark status of the longest reference issue in the segment and draws market attention to an important step forward in the definition of minimum requirements, best practice and governance: the publication of 2015 Green Bond Principles this Friday. On the same date, EIB plans to publish a special edition of its CAB-Newsletter, with extensive disclosure of its practice in each of the relevant areas.”
Banks:
Benjamin de Forton, SSA Origination, BNP Paribas: “The tap of the 2026 CAB, the longest reference issue in this segment, reflects the continuous leadership and commitment of the EIB towards Social and Responsible Investments. BNP Paribas is proud to team up with the EIB and the investor community to further enhance the SRI initiative.”
Patricio Bustos-Heppe, Executive Director, DZ BANK, said: “Sustainable fixed income markets are developing at a rapid pace. So are the funding needs of the EIB as one of the frontrunners in the sustainable fixed income markets. Clearly, this tap is yet another proof of the strong leadership the EIB is taking in this segment. Having a long standing commitment with regard to financing "green projects" in Germany, DZ BANK was delighted to have been involved in the tap of the Nov. 2026 EIB Climate Awareness Bond.”
Philip Hertlein, Head of SSA Syndicate and Origination, Landesbank Baden-Württemberg: Yet another fantastic statement of the EIB in the Green Bond market. By increasing their EUR 1bn November 2026s Climate Awareness Bond by a further EUR 250mn in size today, the EIB demonstrated their ongoing commitment to the market in a year where the Global Climate Protocol will be back on world leaders' agenda. Pricing for the EIB was at an unprecedented level of swaps less 32bps (or 32.4bps outright yield) for 11.5yr funds.”
Sachin Shah, Executive Director, Public Sector Origination, Rabobank, said: “EIB remains a leading issuer in the green bond market, and today’s increase of the 2026 Climate Awareness Bond shows the strong support that EIB has from SRI investors even at the remarkably deep sub-Euribor spread levels prevalent in the market at the moment. The increase also highlights EIB’s commitment to providing liquid references in the green bond market and further support EIB’s lending activity to projects contributing to climate action.”
Stuart McGregor, MD Head of European Public Sector DCM, Royal Bank of Canada, said: “EIB’s Euro Climate Awareness Ecoop curve continues to be the most liquid Green bond investment opportunity in the financial markets today, reaching out to investors who consider longer-term climate risk and sustainable and responsible investing in their analyses and creates bonds that both fit their needs and support climate-friendly projects.”
Investors:
Arthur Leijgraaff, Senior Treasury Officer, Financial Markets, FMO (the Netherland Development Finance Company), said: “Besides being active as an issuer of Sustainability Bonds, FMO is also keen to make environmentally and socially responsible investments in its liquidity portfolio. Climate Awareness Bonds issued by the European Investment Bank align with FMO’s green investment criteria and contribute to the development of the SRI market.”
Domenico Nardelli, Treasurer, International Fund for Agricultural Development (IFAD),said: “Smallholder farmers in developing countries are amongst the most vulnerable to the impacts of climate change. IFAD supports all efforts to contain climate change and has embarked on an ambitious 10-point plan to mainstream climate action into all of its investment activities by 2018. Green bonds are a welcome initiative that extends IFAD’s commitment with treasury investments in international capital markets."
Dr. Alexander Schubert, Portfoliomanagement Renten Euroland, Union Investment Privatfonds GmbH, said: “If the information they provide can be trusted, Green Bonds establish a new framework within which capital markets can play a more active role in testing the quality and fostering the substance of environmental finance. Window dressing and greenwashing must be excluded via reliable and accountable allocation of proceeds to eligible disbursements. In our view, this is one of the strongest features of EIB's Climate Awareness Bonds.”
Summary Terms and Conditions for the new bond issue:
Tap Amount |
EUR 250m |
Issue Amount after tap |
EUR 1.25bn |
Payment Date |
31 March 2015 |
Maturity Date |
13 November 2026 |
Coupon |
1.250% |
Re-offer Spread |
32 bps below mid swaps |
Format: |
CAB |
Listing |
Luxembourg |
Lead-Managers |
BNPP, DZ Bank, LBBW, Rabobank, RBC |
BACKGROUND
Renewable energy and energy efficiency – a top priority of the EU and EIB
A key instrument of EU public policy, the European Investment Bank is a market leader in the financing of projects tackling climate change worldwide. In 2014, the EIB dedicated over EUR 19bn, or 25% of its total lending activity, to climate action. Within this area, the EIB strongly supports Renewable Energy and Energy Efficiency, meaningfully contributing to the EU’s sustainability objectives. EIB’s overall lending in these areas in 2014 reached EUR 8.2bn.
Climate Awareness Bonds
CABs, EIB’s Green Bonds, provide investors with the opportunity to associate their investment with EIB’s lending in the areas of renewable energy and energy efficiency, while enjoying the excellent credit quality of EIB as an issuer.
The funds raised via these issues are earmarked to match actual disbursements to eligible projects. These projects include, but are not exclusive to, respectively:
- renewable energy projects such as wind, hydropower, wave, tidal, solar and geothermal production,
- energy efficiency projects such as district heating, cogeneration, building insulation, energy loss reduction in transmission and distribution, and equipment replacement with significant energy efficiency improvements.
EIB’s strict earmarking approach entails the ring-fencing of proceeds in a dedicated liquidity portfolio. Pending disbursements, the portfolio is invested in money market instruments. The EIB provides transparency on the allocation of CAB proceeds annually in its audited financial statements and sustainability report as well as in a dedicated Climate Awareness Bond Newsletter.
EIB first CAB pioneered the Green Bond segment in 2007 and is the largest issuer of Green Bonds to date. In September 2014, together with other MDBs, the Bank committed to maintaining a developmental role in order to spur further sustainable growth of the green bond market. This comprises new reference issuance as well as active engagement in the market- based definition of minimum requirements, best practice and governance.
EIB funding strategy and results
The Bank’s funding strategy combines a consistent and transparent approach with flexibility and innovation, both in terms of product and maturity. In 2015, the Bank plans to borrow ca. 60bn. It raised EUR 62bn in 2014.
Background information on EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The Bank’s strong credit standing is underpinned by exceptional asset quality, a strong capital base, firm shareholder support, conservative risk management and a sound funding strategy.