European Bank for Reconstruction & Development
London, United Kingdom| Invested through |
|
|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | XS2861062425 |
| Aligned with SDGs |
The European Bank for Reconstruction and Development (EBRD) is a multinational developmental investment bank founded in 1991 and headquartered in London. It Initially focused on the countries of the former Eastern Bloc to foster switch from centrally planned economy to market based economy and expanded to support development in more than 30 countries from Central Europe to Central Asia. It specialises in working with the private sector, from the Energy sector to Agribusiness, Property and Tourism, and more. It's also a leader in mobilising private finance for green economies. It offers direct financing via loans, equity and guarantees, but also tailored support and SMEs business advice etc. Uniquely for a development bank, the EBRD has a political mandate in that it assists only those countries ‘committed to and applying the principles of multi-party democracy [and] pluralism’. These days, safeguarding the environment and a commitment to sustainable energy have also always been central to the EBRD’s activity.
Investment rationale
The EBRD issues a range of Green and Social Bonds that help to illustrate and support the environmental and social aspects of the Bank’s mandate. It commits to align all of its financial flows with the Paris Agreement. Theme bonds further benefit from the EBRD’s holistic approach, which aims to ensure that all projects are assessed not only for their specific green and/or social benefits (such as energy efficiency), but also from broader integrity, governance, environmental and social perspectives. They pay addition attention to cover countries at different stages of development, and the range of challenges faced by diverse economic sectors, which cannot easily be captured within a one-size-fits-all approach.
71% of the green bond's proceeds is aligned with the Energy Transition and 29% of revenues is aligned with the Resource Transition. The contribution to the Energy Transition comes from 30% of proceeds allocated to the impact objective Terrestrial & Aquatic Biodiversity Conservation, 27% of proceeds allocated to Renewable Energy, and 14% of proceeds allocated to Energy Efficiency. The contribution to the Resource Transition comes from 17% of proceeds allocated to the impact objective Pollution Prevention & Control, 9% of proceeds allocated to Environmentally Sustainable Management of Living Natural Resources & Land Use , and 3% of proceeds allocated to Green Buildings.