Green bonds: Natixis Asset Management invests alongside EIB
Amongst French asset managers, Natixis Asset Management, through Mirova, holds the largest positions in the "Climate Awareness" green bonds recently issued by EIB
The European Investment Bank (EIB) has recently issued a EUR 650m “Climate Awareness” bond. The 6-year bond is rated AAA and carries an annual coupon of 1.375%. This issue is the largest ever of its kind to be issued in euro. Its aim is to fund projects in the fields of renewable energy and energy efficiency.
Mirova, Natixis AM’s socially responsible investment arm, has invested EUR 55m in the issue on behalf of its aggregate SRI funds (mutual and segregated funds). Mirova holds the largest positions in this EIB issue amongst French asset managers, and is thereby a key player in driving the growth of the green bond market.
“Green bonds” are designed to fund investments which carry environmental benefits or reduce vulnerability to environmental change. This definition includes “Climate” bonds, which focus on investments in businesses designed to mitigate or adapt to climate change; these bonds include a monitoring system designed to ensure that the proceeds have been appropriately used to finance these initiatives.
Issuing green rather than ordinary bonds enables the issuer to widen the scope of potential investors by targeting SRI investors whose investment choices are dictated by environmental, social and governance criteria.