BAKU, Azerbaijan, July 11. The European Bank for Reconstruction and Development (EBRD) has placed the largest green bond deal in its history with a deal to issue 1 billion euros in green bonds for 7 years, Trend reports.
According to the EBRD, the new issue marks the bank's return to the euro market after a three-year absence. It follows the EBRD's $1 billion 10-year and $2.5 billion 5-year deals earlier this year.
The new euro bond offers an annual interest rate of 2.875 percent and was priced at a slight discount, making the effective interest rate 2.898 percent. This is 47.5 basis points higher than the current DBR maturing in 2031.
"The green bond was issued off EBRD’s Environmental Sustainability Programme, where proceeds are earmarked to support a specific portfolio of green projects, which currently comprises investments included in energy efficiency, renewable energy, water management, waste management, pollution prevention, and control/sustainable transport," the bank noted.
Meanwhile, the EBRD is acquiring a stake in Premier Energy PLC, one of the fastest-growing vertically integrated energy infrastructure companies in Southern and Eastern Europe, to support investments in renewable energy production facilities in Romania and Moldova.
The proceeds from the EBRD's participation in the IPO will be used to build new renewable energy production facilities, mainly in Romania, and it is estimated that the project will lead to an annual reduction in carbon dioxide emissions of more than 168,000 tons.
