Dutch Bonds Go Green
We all know the Dutch enjoy green things. Well, now they’re taking that passion to the next level with their first ever AAA-rated sovereign green bond…And they’re not just blowing smoke.
The Dutch debt agency held the auction yesterday, giving preference to investors with only the best ecological credentials. Thirty two investors scrambled over one another to get their hands on a 20-year bond note at the issuance, which raised almost €6bn. But, other countries like Poland, France, Belgium and Ireland all have green bonds – what’s so special about this one?
Its premo quality, that’s what. This is the first ever triple-A rated green bond to grace the market, and the first time that investors with proven green credentials were given preferential treatment in their allocation. Green investors were given an additional 10% on top of their purchase, making a €50 million €55 million at the end of the day.
While green bonds make up an extremely small part of the overall debt markets, their burgeoning popularity has peaked banking, sovereign and company interest in the last few years. The Dutch debt agency placed roughly €21.2bn of orders for its 20-year note yesterday, and said it would reopen it in the coming years to raise a further €4bn to raise a total of €10bn.
Who’s keen to hop on the green train?
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