April 23, 2018 Read More →

European Investment Bank Looks to Expand Green Bond Market With New Sustainable Product

Reuters: 

LONDON—The EIB banker dubbed the “mother” of the green bond has a new baby on the way — a “sustainability” bond the proceeds of which will be used in a range of well-meaning areas from clean water and sanitation to education and health.

Eila Kreivi is head of capital markets at the European Investment Bank’s finance division and pioneered the bank’s move in 2007 to launch the world’s first ‘green’ bond whose proceeds are invested in products that tackle climate change.

It has sold roughly 20 billion euros ($24.64 billion) worth of them since then in 11 different currencies and Kreivi sees the new ‘Sustainability Awareness Bond’ as it will officially be called as a natural evolution.

It is all part of the push by global governments, under the umbrella of the United Nations’ 17 Sustainable Development Goals, to end poverty, protect the planet and ensure prosperity by 2030.

The first of EIB’s new bonds is expected to be sold sometime around September. Raising the equivalent of around 500 million euros ($616.10 million) “would be perfect” Kreivi said though none of the details have been finalized.

In terms of where the money will be spent, it is clear the Luxembourg-based bank wants to focus on parts of the world where it will make the biggest difference. The EIB operates mainly in the European Union but 10 percent of its money is spent in other parts of the world, from the Middle East and Africa to Latin America and Asia.

More: EIB Banker And ‘Mother Of The Green Bond’ Has New Baby On The Way

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