BERLIN, Dec 19 (Reuters) - Germany will tap into the booming market of sustainable finance by issuing its first “green bond” in the second half of next year, the finance agency said on Thursday.
“The German Federal Government intends to support the development of sustainable financial markets and in particular the green market segment by issuing Green German Government securities,” the finance agency said.
The new type of bond, which is part of the government’s efforts to roll over maturing debt, will be designed in the form of so-called green twin bonds.
This means that the federal government will issue green bonds with the same maturity and coupon as conventional federal securities, the agency said. The green twin bonds will replace part of the conventional twin bond’s auction volume, the agency said.
The agency did not specify the volume, but the three people familiar with the matter told Reuters on Wednesday that the “green bond” will have an issue volume of a high-single digit to low double-digit billion euro amount. (Reporting by Michael Nienaber Editing by Michelle Martin)