On Monday 12th April 2021, EUROFIMA successfully priced a new EUR 250mn 20-year Green Bond, which is its longest outstanding maturity. The transaction marked EUROFIMA’s first visit to the primary market in 2021 as well as its first Green Bond issuance since the update of its Green Bond Framework published on 7th April 2021.
The proceeds of the bonds will be utilised for lending to railways to invest in electric passenger transport according to EUROFIMA’s Green Bond Framework, which has received a Second-Party Opinion from Sustainalytics.
The deal benefitted from a strong investor interest, with books almost 5 times oversubscribed, allowing to tighten the spread from MS+20bps area to MS+17bps, pricing through fair value. The transaction was distributed amongst different investor types and geographies with 68 different investors participating. ESG investors dominated the orderbook and received more than half of the allocated amount.
Asset managers bought 45%, Central Banks and Official Institutions 26%, Pension Funds and Insurance companies 9% and Banks took 20% of the transaction. In terms of geographical distribution, 97% was allocated to European and Middle East countries (50% Germany & Austria, 14% to CEEMEA, 11% Nordics, 7% Southern Europe, 6% Benelux, 5% to UK, 4% France), and 3% to Asia.
