The European Commission has announced that it has issued its first green bonds, raising € 12 billion ($ 13.8 billion) through a sale that has generated strong investor demand
BRUSSELS – The European Commission on Tuesday issued its inaugural green bonds, raising 12 billion euros ($ 13.8 billion) through a sale that has sparked strong investor demand.
The European Commission said the 15-year bond was more than 11 times oversubscribed, with pounds exceeding € 135 billion.
Johannes Hahn, Commissioner for Budget and Administration, said “this is the largest green bond order book ever on global financial markets and the largest green bond ever issued , not in Europe, but in the world “.
To fund the stimulus, the EU executive said it would raise on capital markets up to around € 800 billion by the end of 2026, 30% of which will be raised through green bonds. In total, the 27 countries of the bloc have agreed on a budget of 1,800 billion euros and a recovery plan in the event of a pandemic.
The EU’s ambition is to become a leader in the green bond market, reserved for sustainable investment.
“This will allow investors to diversify their portfolio of green investments with a highly rated liquid asset, potentially accelerating a virtuous cycle of sustainable investments,” said Hahn.
As part of its “Green Deal” ambition, the EU has committed to reducing the gas emissions that cause global warming by 55% during this decade and has set itself the goal of being neutral. carbon by 2050.
To receive their share of stimulus aid, EU countries have agreed that their national plans devote at least 37% of budgets to climate-related projects.
“Our future is green and it is extremely important that we seize the opportunity to make it clear to investors that their funds will be used to finance a sustainable European recovery,” said Hahn.
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