Germany's green bond will have volume of around ten billion euros
The volume Germany's green bond will be in the region of ten billion euros, the country's government has revealed, reports the Frankfurter Allgemeine. The bond is expected to be within the high single-digit or low double-digit billion-euro range, Jörg Kukies, state secretary in the finance ministry (BMF), said at an event on sustainable finance at the French embassy. The bond will have a special configuration, as it was no easy task to combine the strict German budget law with green issuance, but ultimately it would be subject to the same standards as the green bonds issued by other European governments, he said. The move would bring the financial centres of Paris and Frankfurt closer together by attracting "interest from global investors.”
In November, finance minister Olaf Scholz said the government intended to issue state bonds dedicated exclusively to financing sustainable projects by 2020. The government is working to integrate finance and climate policies and has set up an advisory council to sound out possible steps for ensuring that lending and investment decisions contribute to emissions reduction rather than undermine it.