EBRD issues first, largest green transition bond to Japanese investor

29 / 01 / 2021

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) issued the largest Green Transition Bond at AUD 280 million that also represents the first private placement to be bought solely by a Japanese investor, Japan Post Insurance Co.

The proceeds of the 10-year bond, which bears a coupon of 1.2 percent paid semi-annually and which settled today, will finance the EBRD’s portfolio of green transition projects that seek to enable significant improvements towards decarbonization, a reduction in the environmental footprint and/or improved resource efficiency in key sectors of the economy such as manufacturing and food production.

The EBRD has issued Green Bonds since 2010, and introduced the Green Transition Bond Program as well as issuing its inaugural Climate Resilience Bond in 2019 to highlight the importance of these themes in achieving the goals set by the Paris Agreement.

As a leader in climate finance, the EBRD has set a target annual green investment ratio of more than 50 percent by 2025 under its Green Economy Transition strategy for the period 2021-25.

The purchase is part of Japan Post Insurance Co’s commitment to an environmentally friendly and just transition to a sustainable economy, as well as to a green recovery that accelerates countermeasures against climate change to underpin economic recovery from the Covid-19 crisis.

The company believes that investment in the bonds will play an extremely important role in promoting the transition to a net-zero carbon society.