EIB

This week's funding scorecard looks at the progress supranationals have made in their funding programmes at the beginning of December, with some issuers also setting their funding targets for 2020.

European finance ministers are not keen on setting up a new development bank from scratch. They will instead start technical work on how to better streamline the operations outside the EU of the European Investment Bank and the European Bank for Reconstruction and Development.

Green finance specialists gave a cautious welcome this week to an idea put forward by Axa that the European Union should set up a new organ, modelled on the European Stability Mechanism, to borrow about €500bn for investments to fight climate change. Jon Hay and Burhan Khadbai report.

A report published on Tuesday by Counter Balance, an NGO, calls on the European Investment Bank to reinforce its internal anti-corruption mechanisms, and to be brought under the scope of EU rules such as the Anti-Money Laundering Directive.

For the second time, the European Investment Bank has suggested concessions on its new Energy Lending Policy that would weaken its commitment to stop fossil fuel financing by the end of 2020, and its claim to becoming Europe's 'climate bank'.

This week's funding scorecard looks at the progress supranationals have made in their funding programmes at the middle of October.

EU finance ministers have been presented with three options for how to realign the European Investment Bank and European Bank for Reconstruction and Development. This could lead to the emergence of a new capital markets issuer.

Rating: Aaa/AAA/AAA

Rating: Aaa/AAA/AAA

The European Investment Bank won a huge reception from investors for its debut €STR-linked floating rate note (FRN) this week, ignoring concerns about a lack of demand amid negative rates in the euro market. While there is a lack of clarity about calculating €STR bonds’ fair value and on Euribor’s future, public sector borrowers are expected to embrace the risk-free euro rate.

Investors warmly welcomed the first benchmark €STR-linked floating rate note on Wednesday, brushing aside previous concerns about a lack of demand for euro FRNs as a result of deeply negative rates in the currency.

The European Investment Bank hit screens with a $1bn no-grow global 10 year Climate Awareness Bond on Tuesday. The issuer has not printed a 10 year dollar benchmark since May 2017.