EU starts sales of first ever green bond
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.
