EUROFIMA successfully launched a new 9yr Green bond benchmark
NEWS 02.11.2022

EUROFIMA successfully launched a new 9yr Green bond benchmark

On 2nd November 2022, EUROFIMA successfully issued a new 9-year fixed rate EUR 500 million benchmark due 9th November 2031. The coupon is set at 3.125%, which is equivalent to a spread of MS +19bps and of 110.3bps over Bund.

The transaction represents the first Green Bond of the year 2022 issued by EUROFIMA and the second EUR transaction after both an EUR and USD benchmark issue earlier in the year

The transaction saw spread tightening of 3bps following a very strong orderbook, which was 3x oversubscribed. This in a period of strong volatility in the capital markets, driven by economic headlines, central bank decisions and the war in Ukraine EUROFIMA showed a prudent pricing strategy and good investor participation.

75 investors participated in the offering with a larger share of Central Banks and Official Institutions across the globe representing 44% of the demand. This was followed by Asset Managers at 27%, Insurance and Pension Funds at 16% and Banks at 13%

Regional investor distribution was equally very diverse with 29% of the transaction going to Germany/Austria/Switzerland followed by Asia with 18%, 17% going to UK/Ireland, 14% other Europe, 9% to North America, 7% to France and BeNeLux, and 5% to Middle East.

Use of proceeds will be for funding electric rolling stock for passenger railway transportation according to the Green Bond Framework. EUROFIMA carries an ESG rating of 4.9 (negligible risk) from Sustainalytics, ISS ESG B- (prime) and the deal is listed on the Luxembourg Green Exchange as EUROFIMA is a 100% Climate Aligned issuer.

Read more in our deal review (Link from DZ' review)