The European Bank for Reconstruction and Development (EBRD) has successfully launched the first ever dedicated climate resilience bond, raising US$ 700 million with the issuance.
BNP Paribas, Goldman Sachs, and Skandinaviska Enskilda Banken AB acted as joint bookrunners, which saw demand from approximately 40 investors in 15 countries.
The proceeds from the five-year bond will be used to finance the Bank’s existing and new climate resilience projects. These will typically fall under one of three categories:
- Climate resilient infrastructure (e.g. water, energy, transport, communications and urban infrastructure)
- Climate-resilient business and commercial operations; or
- Climate-resilient agriculture and ecological systems.
Currently, the EBRD has a portfolio of some €7 billion in climate resilient projects. Examples include the Qairokkum hydropower upgrade in Tajikistan and the Saiss water conservation project in Morocco.
The EBRD’s Climate Resilience Bond will be issued in conformity with the four core principles of the Green Bond Principles, while the projects earmarked for the Use of Proceeds are selected and managed in alignment with the Climate Resilience Principles, published on 17 September 2019 by the Climate Bonds Initiative (CBI).