Baden-Wuerttemberg issues EUR 350m green bond

Image by ABO Wind AG.

June 1 (Renewables Now) - The German state of Baden-Wuerttemberg has issued its second green bond worth EUR 350 million (USD 374.9m) amid solid investor interest.

The note has a maturity of ten years and a nominal interest rate of 1.65%, the state government said on Wednesday.

The proceeds from the transaction will be used to refinance plans from the 2021 budget year and sustainable state projects in the area of renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management as well as pollution prevention and control.

Overall, the expenditure allocated to the state's green bonds was increased from EUR 303.5 million in the 2020 budget year to EUR 377 million in the 2021 budget year.

Baden-Wuerttemberg was the first federal state to issue a green bond last year and the success of the second bond proves that the decision was right, said the state's finance minister Danyal Bayaz. Investors have strong interest in the state's sustainable investments, Bayaz added.

The inaugural EUR-300-million bond was issued in March 2021. It is due in March 2031. More than half of the proceeds were allocated to projects in the area of climate change mitigation.

(EUR 1 = USD 1.071)

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