October 2 (Renewables Now) - The European Bank for Reconstruction and Development (EBRD) last week priced a USD-500-million (EUR 426m) global green bond, with proceeds to be used to support the bank's Green Project Portfolio.
The portfolio consists of 349 projects worth a total EUR 3.8 billion, based on operating assets as at end-June, across the areas of energy efficiency, renewable energy, water management, waste management, and air pollution prevention and sustainable transport.
The four-year bond with an annual coupon of 1.375% is EBRD's third green bond issue in benchmark format. The institution has issued 65 green bonds with a combined value of EUR 2.3 billion equivalent since 2010.
"Taking advantage of the strong market backdrop for high grade bonds and appetite for ESG investments, EBRD has achieved an impressive mix of green investor diversification and very attractive pricing," said Marco Baldini, head of European Syndicate at Barclays, which together with Citi and Credit Agricole CIB acted as joint bookrunners.
In terms of investor type, the leading buyers were fund managers with 36%, followed by banks with 25%, central banks and official institutions with 20% and the pension and insurance sector with 19%. In terms of geographic location investors from the Americas accounted for 47% of the deal, Europe without the UK for 22%, and the UK for 21%.
Strong participants were investors with a sustainable investing commitments such as Barclays Treasury, Blackrock and AP3, according to the announcement.
(USD 1 = EUR 0.852)