The European Commission announced on Tuesday 12 October that it has issued the first EU green bond on the financial markets to a value of €12 billion to finance national recovery plans under the Next Generation EU Recovery Plan.
It is also the largest green bond issue by any issuer to date. These bonds will only be used to finance investments that contribute to the EU’s climate transition.
Demand for the 15-year (February 2037) green bonds was “eleven times” greater than supply, EU Budget Commissioner Johannes Hahn said. While the majority of the money comes from the UK, he says the UK financial centre has been used primarily as a platform for international investors. And the strong participation of the Nordic countries shows their appetite for sustainable finance, he said.
By 2026, the EU intends to issue €250 billion in green bonds to finance the European Recovery Plan. At this stage, the Commission has raised €68.5 billion in long-term bonds and €14 billion in short-term EU-Bills.
More information on the EU framework for green bond issuance and compatibility with ICMA standards: https://bit.ly/2YIFHPv (Original version in French by Mathieu Bion)