The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Germany will join European peers like France and Poland next year in selling green bonds, tapping rising demand and favourable issuance costs for such debt as it boosts investments to cut carbon pollution.
Europe’s benchmark issuer will sell about 10 billion euros of the bonds from mid-year via auctions, “twinning†emissions with regular bonds of the same maturity and coupon, the Federal Finance Agency said on Thursday as part of its overall issuance calendar for 2020. The bonds will be fully convertible with their sister bonds ahead of maturity.
The federal government will sell 210 billion euros ($233 billion) of bonds and bills in 2020, the agency said. Thereof, bond sales will amount to 148 billion euros, while shorter-maturity bills are to total 62 billion euros. Some 180 billion euros of the issuance will be used to amortise existing debt.
Pressing climate protection challenges have increased financing needs for Chancellor Angela Merkel’s government to help meet climate targets.