An unusual opportunity

Author: | Published: 1 Feb 2008

One year ago, the European Investment Bank (EIB) was the first issuer to use the Prospectus Directive in all countries of the Eurozone through an inaugural European Public Offering of Securities known as EPOS 1 (for a detailed description, see N Barr and AM Romani, "Europe's first new global note", IFLR November 2006). On July 5 2007, EIB completed a second EPOS (EPOS 2), successfully extending the use of the passporting mechanism to the entire EU. Thanks to simultaneous distribution in different domestic markets through a number of banks, the size of both issues (EPOS 1 linked to eurozone inflation, EPOS 2 to an equity index) was large in comparison with standard structured bonds – €1 billion ($1.438 billion) and €600 million respectively.

Of particular interest is that EPOS 2 is a climate awareness bond, a security that offers innovative environmental features at a time when climate change is prominent...