The European Investment Bank (EIB) has issued the largest climate-themed bond yet launched in the EU region.

The $857m (€650m) Climate Awareness Bond funds raised are earmarked for disbursements to EIB lending projects within the fields of renewable energy and energy efficiency. These projects include renewable energy projects such as wind, hydropower, wave, tidal, solar and geothermal production, together with energy efficiency projects such as district heating, cogeneration, building insulation, energy loss reduction in transmission and distribution, and equipment replacement with significant energy efficiency improvements.

The bond generated strong demand among a series of investors genuinely interested in the socially responsible features of the transaction, adding new investors to EIB’s distribution, it said, particularly in Benelux, Germany and France, which accounted for around 80 per cent of final allocations.

Asset managers, insurance companies and pension funds provided over 50 per cent of distribution by investor type.

The European Union and its long-term financing institution, the EIB, have made climate change mitigation and adaptation a top policy priority.

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