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€1 billion Green Bond heavily oversubscribed on London market

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The triple-A rated European Bank for Reconstruction and Development (EBRD) has placed its largest ever green bond transaction, worth €1 billion, on the London Stock Exchange. The seven-year bonds, maturing in 2031, will also be traded on the Luxembourg Green Exchange (LGX).

Encouraged by a positive market backdrop recovering from recent volatility after the French elections, the bond issue was announced on Tuesday 9 July. After the order book officially opened the next morning at 07:58 BST, interest from investors grew rapidly, surpassing €2.6 billion by 10:13.

The order book closed at 10:30 with final demand in excess of €2.7 billion, with orders from over 70 investors scaled back to the €1 billion on offer in response to the impressive demand from high quality green bond investors. The bonds pay an annual coupon of 2.875%, with a re-offer yield of 2.898%.

The green bond was issued to help finance EBRD’s Environmental Sustainability Programme, where proceeds are earmarked to support a specific portfolio of green projects. It currently comprises investments in the following five areas: Energy Efficiency, Renewable Energy, Water Management, Waste Management, Pollution Prevention and Control/Sustainable Transport.

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