A UK first as Barclays issues €500m Green Bond

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Barclays PLC has today successfully priced and issued a 0.625 per cent €500m green bond. This is a first for the UK market, as it represents the first green bond issued by a UK bank, using UK assets. The transaction was well received, attracting a final order book of €1.85bn.

Barclays will allocate the proceeds from this MREL eligible senior unsecured green bond issuance to the financing and refinancing of those Barclays residential mortgages on properties situated in England and Wales which are in the top 15 per cent of the lowest carbon intensive buildings in these countries, based on estimated energy efficiency. Barclays was able to identify these properties thanks to the publication of Energy Performance Certificate (EPC) data by the UK government in bulk form earlier this year.

This issuance has received pre-issuance certification from the Climate Bonds Initiative. The Climate Bonds Certification Scheme allows investors, governments and other stakeholders to prioritise ‘low carbon and climate resilient’ investments, with confidence that the funds are being used to deliver these outcomes.

Commenting on the issuance, Tushar Morzaria, Group Finance Director, Barclays, said:
“This issuance is an exciting step and complements Barclays’ existing involvement in the well-established green bond market. It will help us diversify our investor base, attracting interest from the growing group of environmental, social and governance (ESG) investors. Today’s announcement also reflects the efforts of our Green Banking Council, which is committed to the development of innovative products and services that support our clients and customers in their transition towards a low carbon and sustainable future.”

Green bonds are fixed income securities, designed to raise finance for assets that have positive environmental and climate benefits. The market has grown significantly and, according to the Climate Bonds Initiative, $93.6bn equivalent has been issued across a number of different companies and sectors in 2017.