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...