‘Article 4(1)(b) of the EuGB Regulation does not provide for a look back period for CapEx. This means that only new CapEx incurred after the issuance of the EuGB is eligible. In each of the years after the issuance of the EuGB and until its maturity, the issuer may allocate proceeds raised by that EuGB to finance capital expenditure.’,

‘Article 4(1)(b) of the EuGB Regulation does not expressly provide a specific look back period for CapEx. CapEx incurred before the issuance of an EuGB could therefore be eligible, so long as it meets the criteria for environmentally sustainable economic activities, as set out in Article 3 of the Taxonomy Regulation. This approach aligns with the possibility to allocate proceeds of an EuGB to assets and expenditures that existed before issuance for which Article 4 of the EuGB Regulation does not expressly provide a specific look back period (please also refer to the answers to Questions 3 and 4). The allocation of EuGB proceeds to CapEx incurred before issuance is further justified on the grounds that the EuGB Regulation provides safeguards against possible misuse regarding the type of activities that the proceeds can be allocated to, disclosure requirements supported by independent external review and, except for issuers falling under Article 1(2), points (b) and (d), of the Prospectus Regulation, supervision by national competent authorities.

In the absence of a specific look back period provided by the EuGB Regulation, general market practice and standards, including investors’ expectations of timelines for historical CapEx to be refinanced, are expected to guide the approach taken by issuers.

If issuers decide to allocate the proceeds of an EuGB to CapEx incurred before issuance, they should do so in a manner that is clear and comprehensible to investors. In this context, the template for the EuGB factsheet in Annex I to the EuGB Regulation and the template for the EuGB allocation reports in Annex II to that Regulation include relevant disclosure requirements for issuers to indicate the share of the bond proceeds to be used for financing and refinancing.’.