One of the world’s main financers of climate action

The European Investment Bank (EIB) is the lending arm of the European Union and the biggest multilateral financial institution in the world[1]. Since its establishment in 1958, the EU bank has invested over €1 trillion[2], focusing on the following areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure, and cohesion.

In 2007, the EIB issued its inaugural Climate Awareness Bond (CAB), the world’s first Green Bond. Proceeds from Climate Awareness Bonds are allocated to EIB’s lending to activities contributing substantially to climate change mitigation.

The EIB’s Climate Bank Roadmap 2021-2025 (CBR) sets out how the bank aims to support the objectives of the European Green Deal. Among other objectives, the EIB plans to gradually increase the share of green financing – financing dedicated to climate action and environmental sustainability – to exceed 50% of new annual operations by 2025. The CBR further states that the EIB intends to align its tracking methodology for green finance with the EU Taxonomy, and gradually align CABs and Sustainability Awareness Bonds (SABs) with the proposed EU Green Bond Standard.

Investor appetite soars for EIB’s second CAB EARN in 2023

Planning to issue a new Climate Awareness Bond under its EARN (Euro-Area Reference Note) programme – following a €5 billion 10-year conventional benchmark in January – the EIB asked NatWest to support the transaction in the role as Joint Bookrunner. NatWest has consistently been involved in the EIB’s Climate Awareness and Sustainability Awareness Bond programmes, having previously acted as Joint Lead Manager for CAB issuances in January 2022 and December 2021, as well as for the inaugural CAB in EARN format in May last year.

Announcing a new benchmark 5-year CAB in EARN format to the market, investors rushed to put in orders when books opened, resulting in a first peak at €20 billion. Despite price tightening, investor support continued to grow, totalling more than €30.5 billion when books closed for the bond, which will pay an annual coupon of 2.750%. At a final issuance size of €5bn, this transaction marked the largest Climate Awareness Bond for the EIB to date.

Over 270 investors participated in the transaction, with 50% of the accounts representing ESG investors. Investors from Asia took over 36% of the placement, followed by investors from the UK (31%) and Germany (14%). Looking at investor type, with 73%, banks and central banks took the majority.

With over €21 billion raised year-to-date, the EIB has now completed ~47% of its 2023 funding programme.

Accelerating green transition by helping customers access green finance

Eric Lamarcq, Deputy Director General – Finance, Global Head of Treasury and Capital Markets at the EIB commented: “We are very pleased to have received such strong investor support for our second Climate Awareness EARN in 2023. This strong demand is a testimony to the value of EIB’s efforts to facilitate sustainable investment with transparency, accountability, reliability and comparability.”

Damien Carde, Head of Frequent Borrower Group DCM, NatWest, said: “We’re delighted to have been able to support the EIB again, and we congratulate our customer on this record order book of over €30 billion. This transaction is also an example of teams within NatWest coming together to bring the best of the whole bank to our customers so we can deliver the best outcome for them. We are conscious that the more we help customers, such as the EIB, to meet their sustainability aspirations, the more we at NatWest can help to accelerate the transition to a net zero economy.”

[1] Source: EIB who we are

[2] Source: EIB at a glance


This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. NatWest Markets does not undertake to update you of such changes.  It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does NatWest Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other NatWest Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. NatWest Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does NatWest Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on NatWest Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.

This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. NatWest Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

NatWest Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. NatWest Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. in England BR001029. NatWest Markets Plc is, in certain jurisdictions, an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is, in certain jurisdictions, an authorised agent of NatWest Markets Plc. NatWest Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through NatWest Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc.

Copyright 2023 © NatWest Markets Plc. All rights reserved.

scroll to top