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EBRD invests €50m in the first green bond issue of the National Bank of Greece



           


The National Bank of Greece launched a €500 million green bond issue on 1 October 2020 (photo: EBRD)
The National Bank of Greece launched a €500 million green bond issue on 1 October 2020 (photo: EBRD)
GREECE. The European Bank for Reconstruction and Development will invest €50m in the issuance of senior senior senior green bonds of the National Bank of Greece (NBG).

The €500 million issue, which is in line with the green bond principles of the International Capital Markets Association (ICMA, which has 601 members in 62 countries), was officially launched on 1 October 2020 with the participation of eighty institutional investors. The NBG intends, as stated in a press release, to "demonstrate its commitment to support the green economy and its strategic direction as an energy bank".

The bond will mature in six years and will be redeemable in five years with a coupon of 2.75% and a yield of 2.875%.
It is the first transaction of its kind offered by a Greek financial institution and the first of a senior bond by a Greek bank since 2015.

"This is an important and innovative transaction that strengthens Greece's capital market, while supporting the country's banking sector and the transition to a green economy. I believe the EBRD's contribution will have a significant demonstration effect for other Greek banks and the Greek market as a whole in promoting green financing and international standards," said Andreea Moraru, EBRD Regional Director for Greece and Cyprus,

NBG's strategic objective is to raise €3bn over the next three years in the energy sector, particularly in the renewable energy sector where it already has a 40% market share. The €500m raised will mainly concern wind and solar energy projects.

 


Frédéric Dubessy


Tuesday, October 6th 2020



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