The European Investment Bank (EIB) celebrated a significant milestone by surpassing €100bn in total issuance of climate awareness bonds (Cabs) and sustainability awareness bonds (Sabs) on Friday 4 October 2024, during a ‘ring the bell’ event at the Luxembourg Stock Exchange (LuxSE).
EIB president visited the LuxSE for the first time to commemorate this achievement and to discuss the future of the green bond market in relation to the EU’s agendas for sustainable finance and the savings and investment union, according to a .
The event also included Luxembourg minister of finance (CSV), who praised the EIB’s success, stating that surpassing €100bn in sustainable bonds was a remarkable accomplishment that underscored the transformative role of finance in tackling global challenges. He emphasised the tangible impacts these bonds had on the real economy, people’s lives and the planet, urging continued efforts to push boundaries in sustainable finance. Roth noted that the partnership between the EIB and LuxSE sets a benchmark for the global financial community, reiterating Luxembourg’s commitment to fostering international partnerships to enhance sustainable finance worldwide.
In her , Calviño highlighted that the milestone reflected the exponential growth of the sustainable bond market and the robust partnership between the EIB and LuxSE. Since the EIB’s of the world’s first green bond in 2007, it had unlocked €100bn in investor support for climate action and sustainability, with Luxembourg emerging as a global centre for sustainable finance. Calviño stated that the EIB would continue to support the green transition by leading the development of a standardised green bond market within the framework of deeper and stronger capital markets in Europe.
, chief executive officer of LuxSE, acknowledged the event as a significant milestone not only for the EIB but also for the sustainable finance sector as a whole. She pointed out that since the EIB pioneered the green bond market 17 years ago, it had played a leading role in market development, fostering standardisation, better reporting and enhanced transparency for investors. Becker noted that the EIB’s contributions had made it a crucial partner and source of inspiration for LuxSE’s sustainable finance initiatives.
According to figures from the LGX DataHub, cumulative funding raised through green, social, sustainability and sustainability-linked bonds globally reached $5.2trn. In August 2024, the EIB achieved the €100bn milestone in Cab and Sab issuance, establishing itself as the world’s largest issuer of green bonds and assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To accommodate a diverse investor base, the EIB issued these bonds in 23 different currencies, setting a market record.
Initially, the EIB focused its sustainability funding on green objectives. In 2018, the institution began issuing sustainability awareness bonds to finance investment projects with social outcomes. Similarly, the Luxembourg Green Exchange (LGX) platform, which was initially dedicated to green bonds, expanded its scope in 2017 to include social and sustainability bonds.