Barclays has announced that it successfully closed a £400m green bond issue on 27 October.
This is the second bond Barclays has issued to support climate-related products and initiatives. The 2020 Green Bond, which matures in 2026, was five times oversubscribed with orders amounting to more than £2bn. It will offer a yield of 1.70%.
The bank says the funds 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.
In 2017 the bank issued its inaugural green bond to fund domestic residential mortgage assets.