The bond also gives investors the buy-to-destroy option of converting any return over 25% into carbon credits through the European Emissions Trading Scheme (ETS). Aldo Romani, the EIB’s deputy head of euro funding, explains: “The idea is to say ‘you will have the same return as from a basket of European governments, and beyond that you can choose to be responsible’.”
Today, RBC Capital Markets has priced EIB's first rouble-denominated bond, raising 2 billion roubles (€57 million) from European institutional investors with the issue in Luxembourg. The fixed-rate bond pays 6.75% with a ten-year maturity – the first ten-year rouble bond to be launched in Russia.
Stephen Dirou, of RBC Capital Markets' emerging market syndication group, said: "Russia is one of the few emerging markets with a normal yield curve – a lot of the others are heavily inverted... because they have short-term inflation fear priced in. This deal can offer a very attractive yield."