EIB, LuxSE Mark €100bn Milestone in Sustainability Funding

The European Investment Bank (EIB) has passed the €100 billion mark in total Climate Awareness Bonds (CAB) and Sustainability Awareness Bonds (SAB) issuance since producing the world's first green bond in 2007.

On Friday 4 October 2024, EIB President Nadia Calviño visited the Luxembourg Stock Exchange (LuxSE) for the first time to mark this milestone. She also discussed the future of the green bond market in the context of the EU agendas for Sustainable Finance and the Savings and Investment Union. 

In the presence of Luxembourg's Minister of Finance, Gilles Roth, the EIB and LuxSE put the spotlight on the EIB's contribution to bringing more clarity to sustainable finance and the role of the broader financial ecosystem in Luxembourg in advancing sustainable investment.

During his speech, Minister Roth commented: "The EIB’s achievement of surpassing  €100 billion in sustainable bonds is remarkable and highlights the transformative role of finance in addressing global challenges. Each of these bonds has had a tangible impact - on the real economy, on people's lives and on the planet. While this milestone is significant, we must continue to push boundaries. This partnership between the EIB and the LuxSE sets a high standard for the global financial community to follow. Luxembourg remains committed to fostering international partnerships to strengthen sustainable finance globally."

EIB President Nadia Calviño highlighted: "The milestone we are celebrating today reflects the exponential development of the sustainable bond market as well as the strong partnership between the EIB and the Luxembourg Stock Exchange. Since pioneering the green bond market in 2007, the EIB has unlocked €100 billion of investor support for climate action and sustainability, with Luxembourg now a global centre for sustainable finance. The EIB will continue to support the green transition also by leading the emergence of a standardised green bond market in the context of deeper and stronger capital markets in Europe." 

Julie Becker, CEO of LuxSE, said: "Today marks an important milestone not just for the EIB but also for the sustainable finance market more broadly. Since it pioneered the green bond market seventeen years ago, the EIB has spearheaded market developments and led the way towards more standardisation, better reporting and more transparency for investors. Thanks to its leading role, the EIB has been a crucial partner and inspiration for LuxSE’s sustainable finance initiatives."

In 2007, the EIB issued the world's first green bond and inaugurated a market that would see "exponential" growth in the ensuing years. According to figures from the LGX DataHub, the cumulative, total funding raised through green, social, sustainability and sustainability-linked bonds issued globally has reached $5.2 trillion. 

In August 2024, the EIB passed the €100 billion mark of CAB and SAB issuance, making it the world’s largest issuer of green bonds as well as assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To meet the needs of a broad investor base, the EIB has issued these bonds in 23 currencies.

The EIB's inaugural CAB was listed on LuxSE in 2007. In 2016, LuxSE established the Luxembourg Green Exchange (LGX), the first platform dedicated exclusively to sustainable securities.

Initially, the focus of the EIB's sustainability funding was on green objectives. In 2018, the EIB started issuing Sustainability Awareness Bonds, which raise financing for investment projects with social outcomes.

Similarly, the LGX platform was initially dedicated to green bonds and the scope was expanded to include social and sustainability bonds in 2017.