EIB issues its first ever digital Climate Awareness Bond and Swedish Krona transaction

Today the European Investment Bank priced its first ever SEK 1 billion digital Climate Awareness Bond (CAB) using so|bond, the sustainable and open digital bond platform built on blockchain technology launched by Crédit Agricole CIB and SEB in April 2023. The platform uses a new type of blockchain validation logic, the Proof of Climate awaReness (PoCR) protocol, which enables an energy consumption comparable to non-blockchain systems and incentivises participating nodes to continually improve the environmental footprint of their infrastructures. More specifically, each node will be remunerated for its efforts according to a formula linked to its environmental impact evaluated with the Life Cycle Assessment ISO standard: the lower the environmental footprint it is, the larger the reward will be.

The platform adopts the so|bond model and is operated by Crédit Agricole CIB, CACEIS and SEB, with Crédit Agricole CIB acting as central account keeper, i.e. safekeeping the newly issued digital bond. CACEIS and SEB take custody of the issued digital bond on behalf of their investing clients. In addition, CACEIS is acting as the paying agent for the issuance.

On the legal front, EIB was advised in this transaction by Clifford Chance while the joint lead managers were advised by Linklaters.

EIB Vice-President Ricardo Mourinho Felix said: “Today marks another ground-breaking milestone for the European Investment Bank as we proudly announce our first-ever green and SEK-denominated bond issued in a blockchain format. This Climate Awareness bond will run on a platform designed to minimise the environmental footprint of the IT infrastructure. We take immense pride in leading the charge towards sustainable finance and technological innovation, with the support of our valuable partners and investors. By combining the power of blockchain with our unwavering commitment to environmental stewardship, we further strengthen our path towards a greener and more sustainable future.”

Pierre Gay, Global Head of Crédit Agricole CIB’s Global Markets Division, said: “Credit Agricole CIB is proud to be associated with EIB’s first ever digital green bond and to contribute to its pioneering drive to explore new technologies applied to primary markets with sustainability in mind. We strongly believe that the open so|bond model and the innovative Proof of Climate awaReness blockchain validation protocol respond to EIB’s philosophy and willingness to push boundaries and support new solutions aimed at improving inefficiencies in primary market processes and infrastructures in a sustainable manner.”

Tanguy Claquin, Global Head of Sustainability at Crédit Agricole CIB said: “Credit Agricole CIB is a historic partner of EIB in the green bond market through its Climate Awareness Bond (CAB) program, and we are once again happy to bring to market a new CAB, the first European digital green bond, an innovative transaction using a new technology tryingto address some of the concerns associated with the perceived environmental impact of the fast moving field of Digital Ledger Technology”

Anna Sjulander, Global Head of SSA DCM at SEB said: "SEB is delighted to assist EIB in the delivery of its first digital Green Bond through a solution that combines innovation and climate smart solutions. It is a great technological development which paves the way for efficiency gains and in parallel introduce transparency of environmental footprint through the Proof of Climate awaReness protocol. The open source so|bond model used to issue the bond further promotes collaboration among industry participants."

Ben Powell, Global Head of Sustainable DCM at SEB said: "SEB has a long-standing relationship with EIB and taking the next step of the Climate Awareness Bond program into the digital era together is a great evolution which we are very proud of. While blockchain has been increasingly deployed in the financial sector in recent years, perceptions of high energy consumption have restrained adoption. The platform we have built aims to address this by introducing a disclosure of the environmental footprint of the operators of the network."

LuxSE Director of International Capital Markets and Member of the Executive Committee Arnaud Delestienne concluded: “This first ever digital Climate Awareness Bond represents a significant step towards the digitalisation of capital markets with a strong focus on environmental consciousness, which we wholeheartedly support. It is also the first native digital green bond to be displayed on our Luxembourg Green Exchange platform, adding another successful milestone to our longstanding relationship with EIB and reinforcing our commitment to a sustainable and digital future for international capital markets."

Summary terms and conditions for the new bond issue: 
Issue amount: SEK 1 billion
Pricing date: 19 June 2023
Settlement date: 19 June 2023
Maturity date: 19 June 2025
Coupon: 3.638 %, payable annually in arrear, ISMA-30/360
Re-offer spread: Mid-Swap - 21 bps
Re-offer price: 100.00%
Joint lead managers: Crédit Agricole CIB and SEB
Use of Proceeds: Following the Climate Awareness Bond framework Climate Awareness Bonds (CAB) (eib.org)
Governing law: Luxembourg
Admission: Luxembourg Stock Exchange Securities Official List (LuxSE SOL)
Central account keeper: Crédit Agricole CIB
Blockchain: Public permissioned blockchain (PoCRNet) under the so|bond model
On-chain reference: 0x8AF1987dE88330A47aCE9d8A76fCcD625414777f