The bank has successfully closed its second green bond as it continues its strategy to deliver net zero financed emissions by 2050
Barclays has successfully closed a £400m green bond this week, the second issued by the bank with the specific aim aimed of supporting climate-related products and initiatives, it announced yesterday.
The 2020 Green Bond, which matures in 2026, attracted “strong institutional investor interest” and was five times oversubscribed, according to Barclays, which said orders amounted to more than £2bn, offering a yield of 1.7 per cent.
Funds raised from the issuance are set to be allocated towards the financing and/or re-financing of mortgages on energy efficient residential properties in England and Wales that have originated within the last three years, the bank said, with more than half allocated to refinance Barclays’ Green Home mortgages, which offer discounted mortages for properties which meet certain energy efficiency thresholds.
It follows the issuance of Barclays’ first ever green bond in 2017, which was the first from a UK bank earmarked for funding domestic residential mortgage assets, and last year the bank pledged to increase its green bonds commitment to £4bn over time, as well as pledging to deliver £100bn green financing by 2030.
The 2020 Green Bond issued this week has received Climate Bonds Initiative certification, while Carbon Trust is acting as an assurance provider for its wider green bond framework in order to ensure it meets the International Capital Market Association Green Bond Principles 2018, Barclays said.
“Barclays has been a