Nord/LB issues green covered bond on the capital market for the first time
On 21 January 2019, NORD/LB Luxembourg Covered Bond Bank successfully placed the world's first green covered bond under Luxembourg law dedicated to financing green assets.
The bond had a nominal volume of EUR 300 million has a term of five years. The high demand from investors was clearly reflected in the order book with total demand of more than EUR 1.1 billion.
“We are super-happy, because the deal went extremely well. It was nearly four times subscribed with a very granular order book, well balanced geographically and by investor type” said Thomas Keith, Managing Director, Financial Markets and Loans, at NordLB Luxembourg Covered Bond Bank.
This new achievement will further strengthen Luxembourg’s position as a centre of competence in the field of green finance.
Thanks to the involvement of the public and private sectors, the financial centre has developed an ecosystem able to raise international capital in order to finance sustainable development projects and, furthermore, reflects the pioneering spirit that Luxembourg has always shown in this area.