Barclays raises £400m in second green bond issue

Barclays has announced that it successfully closed a £400m green bond issue (the 2020 Green Bond), the second bond it has issued with a specific intention to support climate-related products and initiatives. The 2020 Green Bond, which matures in 2026, attracted strong institutional investor interest with orders amounting to more than £2bn (an oversubscription of five times). It will offer a yield of 1.7 per cent.

The funds raised will be allocated towards the financing and/or re-financing of mortgages on energy efficient residential properties in England and Wales originated within the last three years. More than half the funds raised will be allocated to refinance Barclays’ Green Home Mortgage Product mortgages, which are offered to customers at a discount provided their property meets certain energy efficiency thresholds.

The 2020 Green Bond has received Climate Bonds Initiative certification and, in addition, Barclays has a second party opinion on its 2019 Green Bond Framework from the Carbon Trust as an assurance provider, confirming that the framework meets the International Capital Market Association Green Bond Principles 2018.

In 2015 the bank announced one of the largest green bond investment commitments and in 2017 issued its inaugural green bond, the first from a UK bank used to fund domestic residential mortgage assets. In 2019 Barclays increased its green bond investment commitment, signalling an intention to invest up to £4bn over time. It also committed to deliver £100bn of green financing by 2030 and has a target of investing £175m over five years in innovative green companies. Since 2015 Barclays has also been a very active underwriter of ESG bonds for clients through its investment bank, underwriting more than $40bn of deals.

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