The European Investment Bank (EIB) has issued a new €500 million (£397m) green bond.

The Climate Awareness Bond (CAB) has a 12-year tenor, double the six-year issuance previously, which will provide investors with a “maturity that reflects the duration of renewable and energy efficiency projects”, the EIB said.

CABs provide investors with the opportunity to invest in projects contributing to climate action.

There was “strong demand” from a range of investors, with asset managers, insurance companies and pension funds leading the way to buy 63% of the bond.

Banks made up 27% of the purchase and insurance and pension funds 7%, the EIB added.

Eila Kreivi, Director and Head of Capital Markets Department at the EIB said: “The issue, which has been welcomed by a number of socially responsible investors in spite of the current low level of interest rates, will be increased strategically to meet actual investor demand.”