After a three-year gap from the EUR market, the European Bank for Reconstruction and Development (EBRD) has successfully priced its largest green bond transaction to date, issuing a €1 billion ($1.08 billion) 7-year benchmark. Earlier this year, EBRD also issued a USD 1 billion 10-year and a USD 2.5 billion 5-year transaction.
The EUR 1 billion 7-year green bond was priced at MS+12bps, with a reoffer price of 99.856% and an annual coupon of 2.875%. This results in a re-offer yield of 2.898%, equating to a spread of +47.5bps above the current DBR 0% 02/15/2031.
The bond was issued under EBRD’s Environmental Sustainability Programme, with proceeds designated to support a specific portfolio of green projects (the “Green Project Portfolio” or “GPP”) in areas such as Energy Efficiency, Renewable Energy, Water Management, Waste Management, and Pollution Prevention and Control/Sustainable Transport.
Following a positive market backdrop after the snap French elections, the mandate for the new EUR 7-year green transaction was announced on Tuesday, 9th July. The orderbook opened the next morning at 07:58 UKT with guidance at MS+15bps. Investor interest grew rapidly, surpassing EUR 2.6 billion by 10:13 UKT, allowing the spread to be set at MS+12bps. The orderbook closed at 10:30 UKT with final orders exceeding €2.7 billion (USD 2.94 billion) and the size confirmed at €1 billion from over 70 investors.
The transaction saw strong demand from high-quality green bond investors and was jointly managed by BNP Paribas, Credit Agricole CIB, and NatWest Markets.