By Lisa Kerner
Charlotte, N.C., Oct. 29 – The European Investment Bank priced its first ever CAD maple climate awareness bond, a new C$500 million green bond due Nov. 5, 2020.
This marks the first green bond issuance from an international supranational/sovereign/agency issuer in the Canadian market and it was EIB’s second appearance in the Canadian market this year, according to a news release.
The bond was priced at mid-swaps plus 21 basis points.
The issue pays a semiannual coupon of 1.25% and has an issue price of 99.792% to give a spread of 21 basis points over the Canadian five-year mid-swap.
EIB said the order book was “granular” with around 25 investors participating. Canadian investors took just over half of the transaction, followed by buyers from Asia (18%), Americas (17%) and Europe and the Middle East (12%).
Investor types were largely banks (45%) and pension funds/asset managers (34%).
Lead managers were BMO Capital Markets, Scotiabank and TD Securities.
The deal had only a 4 bps new issue concession, according to comments on the news release from Scott Graham, head of international public markets at BMO Capital Markets.
Proceeds will be used for lending projects within the fields of renewable energy and energy efficiency.
EIB’s green bond issuance in 2015 now stands at €3.5 billion and its total green bond issuance is €10.8 billion across 11 currencies.
The lender for the European Union is based in Kirchberg, Luxembourg.
| Issuer: | The European Investment Bank
|
| Issue: | CAD maple climate awareness bond
|
| Amount: | C$500 million
|
| Maturity: | Nov. 5, 2020
|
| Lead managers: | BMO Capital Markets, Scotiabank, TD Securities
|
| Coupon: | 1.25%
|
| Price: | 99.792%
|
| Reoffer spread: | Mid-swaps plus 21 bps
|
| Reoffer yield: | 1.293%
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 5
|
| Format: | Rule 144A/Regulation S
|
| Listing: | Luxembourg
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