Germany raises €6.5 bln from first-ever green bond

(EurActiv, 3 Sep 2020) Germany saw good demand for its first-ever green bond on Wednesday (2 September), in a landmark moment for Europe’s climate-focused finance drive.

Germany raised €6.5 billion from the 10-year bond, after investors queued up for over €33 billion, its finance agency said in a statement.

“With today’s issue of the government’s first green bond, we have taken an important step towards significantly strengthening Germany as a sustainable finance location,” German deputy finance minister Joerg Kukies told Reuters.

Even at this early stage, “Germany is well on the way to becoming a benchmark issuer in the field of sustainability bonds,” according to German public bank LBBW analyst Elmar Voelker.

A further bond issue is planned before the end of the year.

The green bonds are “twin bonds”, issued alongside conventional federal bonds with a similar maturity and rate of return. They include a unique feature where investors will be able to swap the green bonds for an otherwise identical conventional bond, to help mitigate any liquidity concerns.

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EurActiv, 3 Sep 2020: Germany raises €6.5 bln from first-ever green bond