The European Investment Bank (EIB) has launched SEK2.25bn of new climate awareness bonds, the first time it has done so in the Swedish currency. Baltic lender Swedbank is the lead manager.
All proceeds from the issue will fund climate protection, by lending to renewable energy projects such as wind, hydro, solar and geothermal production, as well as energy efficiency projects including district heating, cogeneration and building insulation.
The bonds will mature on February 17 2015. An SEK1.7bn fixed-rate tranche will pay an annual coupon of 2.95%, while an SEK550mn floating-rate tranche will pay a quarterly coupon of 3-month Stibor +10 basis points.
The EIB has financed more than €6bn of renewable energy projects in the past five years. The bank’s first climate awareness bond was launched in 2007, denominated in euros.
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