60-mln€ EBRD investment in Mytilineos’ green Eurobond issue

The European Bank for Reconstruction and Development (EBRD) on Monday announced its participation in the first “green” Eurobond issuance by the Greek industrial and energy group Mytilineos SA.

The EBRD participated with an outlay of 60 million euros, of the total 500-euro million offering.

The investment bank pointed to Mytilineos’ strong international presence.

Founded in 1908, the company’s shares have been listed on the Athens Exchange since 1995, and with a market capitalization of approximately 2.03 billion euros as of April 9, 2021.

Mytilineos’ green Eurobond is aligned with the International Capital Market Association’s (ICMA) Green Bond Principles, which advocate transparency and disclosure and foster integrity in the development of the green bond market.

According to an ERBD press release, the proceeds of the issuance will be used exclusively to finance eligible green projects with clear environmental benefits. These projects are aligned with the provisions in the EU taxonomy and contribute to specific Sustainable Development Goals as defined by the United Nations.

“One of the core objective of the EBRD is the transition towards a low-carbon economy in hard-to-abate heavy manufacturing industries. To help accelerate this transition, dedicated green finance channels such as green bonds can provide companies with the necessary funding to implement low-carbon projects,” according to said Frederic Lucenet, the EBRD’s head of manufacturing and services, who added:

“We have had a long relationship with Mytilineos focused on decarbonisation. Their green bond and net-zero carbon commitments can have a significant demonstration effect for other industrial producers in the EBRD regions.”