Amundi and EIB Aim Green Finance at Small Caps

    Stockholm (NordSIP) – Amundi and the European Investment Bank (EIB) announced the launch of the Green Credit Continuum program, agreed at the Paris Europlace 2019 international financial forum.

    The program aims to provide € 1 billion in three years for the development of green debt in Europe in order to deploy the new financing needed to meet the Paris Agreement targets in the EU. In particular, the Green Credit Continuum program hopes to improve European companies’ and green projects’ access to market financing to speed up their energy transition by boosting supply and demand for green finance. The EIB’s has commited to an initial investment worth up to € 60 million.

    The program has three components. First, it foresees the creation of a diversified fund that will invest in green high yield corporate bonds, green private debt and green securitised debt. It is hoped that these three new segments on the European green bond market will offer attractive yields to institutional investors and thus stimulate the supply of green finance.  Secondly, a Scientific Committee of green finance experts will be formed to define and promote environmental guidelines for these three markets in line with international best practice and legislation derived from the European Commission action plan on financing sustainable growth. Lastly, a European Green Transaction Network will be put in place to source deals and projects.

    “Over the last few years the European green financing market has mainly developed by way of green bond issuances from sovereign, quasi-sovereign and large corporate issuers. To finance additional efforts to promote European energy and ecological transition goals, new market instruments are needed that enable smaller companies and green projects to access market financing, as well as offer higher yields to investors. The Green Credit Continuum program therefore aims to foster the development of the green debt market beyond the existing green bonds, supporting small-scale green projects, and financing SMEs and mid-caps,” explained a press release from the EIB.

    Photo courtesy of the EIB


    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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