Preloader

EU starts sales of first ever green bond

Reading Time: < 1 minute

The European Union started selling its first ever green bond on Tuesday, Refinitiv news service IFR reported, taking its first step to potentially becoming the biggest issuer of environmentally-friendly debt with a record-sized deal.

The 15-year green bond, due February 2037, will raise 12 billion euros ($13.87 billion), lead managers said on Monday, making it the largest green bond launch in the government bond market to date.

Price guidance for the bond is around 5 basis points below the mid-swaps level and it will price later on Tuesday, IFR reported.

The bond will finance member states’ environmentally beneficial projects as part of the bloc’s coronavirus recovery fund. With 30% of the up-to 800 billion euro recovery fund set to be financed by green bonds, the deal is the first step for the EU towards becoming a leading force in the fast-growing green bond market.

Once you're here...