EIB announces plans for new bond supporting sustainable development

By Sarah Lizee

Olympia, Wash., April 20 – European Investment Bank announced plans for a new sustainability awareness bond that aims to support the achievement of the United Nations’ Sustainable Development Goals by focusing on investment in social, green and sustainable projects, according to a press release.

The green bond is currently being prepared by the finance and projects directorates of EIB and will initially focus on activities in the water sector and then encompass activities in other areas with positive social impacts, such as health and education, the bank said.

EIB said that activities in the water sector were selected at first as it has “considerable experience and available reporting indicators allowing the bank to evaluate its financing impact on reaching several [sustainable development goals] linked to this sector.”

The first issuance is expected to take place this autumn.

While EIB’s green bonds, or climate awareness bonds, focus on climate action-related investment, the new product will have a wider scope, the bank said.

The United Nations estimates that around $6 trillion will be needed annually over 15 years to achieve the Sustainable Development Goals.

The European Union aims to support this effort partly through its new sustainable finance action plan, which aims to redirect capital flows towards sustainable investment, achieving sustainable and inclusive growth, managing risks stemming from climate change, resource depletion or social issues and fostering transparency and more long-term thinking in finance.

“Given that the EIB as the EU Bank will be heavily involved here, this action plan provides the perfect context to develop a financial product to tackle these challenges,” the bank said.

The European Investment Bank is a lending institution based in Luxembourg.

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