Netherlands to launch 1st green bond sale in May

The Netherlands plans to launch its maiden green bond offering in May, targeting up to EUR 6 billion (USD 6.77bn) of proceeds for climate-related expenditures and investments.

The sale of the 20-year securities will start on May 21, 2019, the Dutch State Treasury Agency (DSTA) announced on Monday. The targeted volume of the placement will range between EUR 4 billion and EUR 6 billion, which will go to support the country’s expenditures and investments set in categories under its green bond framework. Among those are renewable energy and energy efficiency projects, as well as clean transportation and climate change adaptation initiatives.

The green bond, maturing on January 15, 2040, has been certified by the Climate Bonds Initiative and will make the Netherlands the first country with an AAA credit rating to issue such securities. The offering will be carried out via a Dutch Direct Auction (DDA), which will price the bond on the auction day and no later than May 22, 2019. The coupon will be announced on May 17.

“Our aim is to give an extra boost to the Dutch green capital market through the issuance of the Green Bond,” commented Minister of Finance, Wopke Hoekstra. The nation’s ambition is to issue a so-called dark green bond that will enable it to lower its carbon footprint in the long run.

(EUR 1.0 = USD 1.128)

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