EIB

When the European Parliament voted to approve the EU Taxonomy Regulation on June 18 — the final step in the Regulation’s legislative journey to providing the foundation for sustainable finance in Europe — more than just a glass was raised at the European Investment Bank. The issuer took the opportunity to issue a new Climate Awareness Bond (CAB) and announce the extension of CABs to two new project areas that substantially contribute to climate change mitigation.

The European Bank for Reconstruction and Development is launching the second phase of its Green Economy Transition approach and hopes to help policymakers make the recovery from the coronavirus pandemic a green one. But critics say its plans are little more than “business as usual” and that even the activities it classes as green sometimes have weak environmental credentials.

The weakness of communication along the capital markets chain is one reason why so little progress has been made on greening the economy.

The European Investment Bank is going through intense discussions — both internally and externally — about its plan to become the EU’s Climate Bank. NGOs are accusing it of “backtracking” and demanding it sets sustainability criteria for the companies and banks it works with, but the EIB insists it is listening to concerns and will reveal more of its plans later this year.

The European Investment Bank will be able to issue more Climate Awareness Bonds (CABs) after extending its lending framework to make two additional categories eligible for inclusion.

The European Investment Bank and the State of Brandenburg have mandated banks to bring euro deals on Thursday, in what has been an extremely thin week for supply with issuers well funded and some weakness in secondaries.

Sovereign, supranational and agency bond issuers are mobilising their resources to support the fight against Covid-19. The below table details the bonds they have issued, specifically in response to the coronavirus pandemic.

Rating: Aaa/AAA/AAA

The European Investment Bank raised $5bn with a three year global benchmark on Tuesday, setting the stage for fellow SSA borrowers to tap the dollar market later in the week.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, May 18. The source for secondary trading levels is ICE Data Services.

The European Investment Bank inaugurated its sustainability awareness bond (SAB) framework in Australian dollars on Tuesday, while on Wednesday NRW.Bank printed the largest SSA Kangaroo so far this year.

Public sector borrowers found plenty of demand as they hit the market with dollar deals across the curve on Tuesday. With robust demand and a favourable basis swap for euro funders, more issuers have lined up deals in the currency to follow.