The European Investment Bank (EIB) has launched its first climate awareness bond (CAB) in pounds sterling.

The £500 million issue is the EIB’s largest CAB transaction – which raises funds from fixed income investors to support EIB lending for renewable energy and energy efficiency – this year.

Projects will range from wind farms and geothermal production to building insulation, district heating and replacing equipment with energy efficiency improvements.

The bank said the transaction was driven by “investors interested in socially responsible features, mainly out of the UK”.

Eila Kreivi, Director and Head of Capital Markets Department at the EIB said: “Today’s transaction was driven by the emergence of socially responsible portfolios among large mainstream investors. This has enabled EIB’s first GBP green bond to be issued in liquid size.”

CABs have raised over €5 billion (£4.1bn) equivalent in nine different currencies to date. The EIB’s overall lending in renewable energy and energy efficiency last year reached a record €8.6 billion (£8bn) .