EIB-backed initiative boosts climate conscious investing

The European Investment Bank (EIB), BNP Paribas and Vigeo have launched Tera Neva, a sustainable investment initiative which allows investors to align their financial objectives with their energy transition goals.

The launch comes ahead of the global climate conference, COP21 in Paris in December 2015, and follows the announcement of the French Energy Transition law.

Through Tera Neva, the EIB is issuing a EUR500m equity index-linked bond, in its Climate Awareness Bond format, which dedicates proceeds to renewable energy and energy efficiency projects. The transaction, arranged by BNP Paribas, is 100% capital guaranteed.

The payoff is linked to the performance of the ‘Ethical Europe Climate Care Index’ over the life of the bond, floored at zero and paid at maturity. This Index consists of 30 European equities (reviewed quarterly) selected on financial and sustainability criteria based on Vigeo and Solactive filters.

Tera Neva is supported by a group of institutional investors including ACMN VIE, AVIVA FRANCE, CARAC, BNP Paribas Cardif, CNP Assurances, ERAFP, GENERALI, GROUPAMA, HSBC Assurances, NATIXIS Assurances, PREVOIR and SURAVENIR which have invested €500m in the initiative.

Bertrand de Mazières, director general of finance at the EIB commented: “In 2007, the EIB pioneered Green Bond issuance with the launch of the first Climate Awareness Bond, and since then CAB issuance has reached almost EUR11b. CAB disbursements are earmarked to renewable energy and energy efficiency projects, allowing investors to contribute to the goal of limiting global warming to 2°C. EIB-backed initiative boosts climate conscious investing, and demonstrates our willingness to cater to investor demand for tailor-made climate finance products.”

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