HomeEconomyEuropean Union12. October 2021, 6:49 p.m.
EU: billions of green bonds
The European Union set several records with the creation of its first green bond. It has collected around twelve billion euros with the 15-year paper, announced banks mandated to the placement. This is the highest amount ever for a green government bond. Demand for green bonds was also particularly high: investor bids amounted to € 135 billion. For the placement, the EU secured assistance from the banks BofA Securities, Crédit Agricole, Deutsche Bank, Nomura and TD Securities. The green titles are expected to put up to 250 billion euros in the coffers by 2026, or nearly a third of Corona’s “Next Generation EU” reconstruction program, which is supposed to revive the EU economy after the crisis. “This will make us the largest green bond issuer in the world,” Budget Commissioner Johannes Hahn said recently during the presentation of the emissions plans. “It is also the expression of our commitment to sustainable development.” The revenues will be used to finance climate-related spending. The EU wants to become CO2 neutral by 2050.
© SZ of October 13, 2021 / Reuters