Germany to issue new green bond, Spain in the starting blocks

In Kürze

Germany will issue a new 10-year green bond in September via auction in the amount of € 3.5bn. It will be reopened by a further € 3bn in October. The conventional twin of this bond is the 10-year Bund maturing in 2031. Thus, the government continues its strategy – which started in 2020 – of issuing green benchmark bonds.
Market Commentary

Highlights:

  • Germany will issue its second 10-year green benchmark bond in September (€ 3.5bn initially). This will further increase the outstanding volume of green German bonds to € 21bn (currently outstanding throughout euro area € 91bn). Hence, Germany is moving forward in the process of creating a complete green yield curve.
  • The ‘twin concept’ pursued by Germany, according to which for every green bond there is a conventional one with the same maturity and coupon, is unique. This creates a higher degree of transparency.
  • The greenium is around 5 bps across the curve indicating strong demand by investors and reflecting the additional transparency of green bonds.
  • Spain will issue its first green bond in September. It will have a maturity of 20 years, the volume is not known yet. Further green bonds will be placed in the coming months.

Download the full publication below

Market Commentary I Germany to issue new green bond, Spain in the starting blocks

Also interesting

Picture

© Generali Investments, alle Rechte vorbehalten. Diese Webseite wird von Generali Investments zur Verfügung gestellt und gilt als Marketingkommunikation und Finanzwerbung in Bezug auf die Produkte und Dienstleistungen der folgenden Unternehmen der Generali Gruppe: Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. und Generali Investments Holding S.p.A. (im Folgenden zusammengefasst Generali Investments). Darüber hinaus kann die Webseite Marketingkommunikation und Finanzwerbung für Produkte und Dienstleistungen von Unternehmen enthalten, die Teil der von Generali Investments Partners S.p.A. Società di gestione del risparmio koordinierten Multiboutique-Plattform sind, insbesondere von Generali Global Infrastructure, Sycomore Asset Management, Aperture Investors LLC, Plenisfer Investments SGR, Lumyna Investments und Generali Real Estate S.p.A. Società di Gestione del Risparmio.