The European Investment Bank (EIB) has issued the largest ever bond aligned with the European Green Bond Standard (EuGBS), marking a major step in aligning capital markets with the EU’s green finance framework.

The €3bn Climate Awareness Bond (CAB), maturing in May 2037 and offering a 3.125% annual coupon, drew overwhelming investor interest, with the order book more than 13 times oversubscribed. Over 300 orders pushed the final book size beyond €40bn.

Demand was predominantly driven by bank treasuries which accounted for 46% of investors, followed by 38% from fund managers, the remaining 16% was acquired by central banks and other official institutions.

This is the first bond issued by a supranational under the EU’s new green bond rules, which came into force at the beginning of this year. There have already been initial issuances by corporates, including Italian utility firm A2A and the public sector, including Île-de-France Mobilités, the transport authority for the Île-de-France region.

The new rules require alignment not only with the EU Taxonomy’s ‘Substantial Contribution’ criteria, but also with the ‘Do No Significant Harm’ and ‘Minimum Safeguards’ principles. The bond also received a positive external review in line with the EuGBS regulation.

EIB President Nadia Calviño said the deal demonstrates how capital markets can drive the transition to a sustainable economy. “This transaction brings the EIB’s high standards of quality, transparency and scale to the EU’s new European Green Bond Standard.” 

The bond forms part of the EIB’s broader 2025 funding strategy, with around €35.8bn already raised—close to 60% of its €60bn annual target. Proceeds will fund projects primarily aimed at climate change mitigation.

The success of this issue is expected to support future EuGBS-aligned bonds, with further progress dependent on enhanced data availability and refinements to the EU Taxonomy’s verification criteria.

A2A marks green bond standard debut