October 13 (Renewables Now) - Switzerland issued an inaugural green bond of CHF 766.05 million (USD 769.38m/EUR 792.68m) in an auction on Wednesday, drawing strong interest.
The notes are due on October 26, 2038 and bear an interest rate of 1.50% per year, the Federal Finance Administration said in a statement on its website. The bond is priced at 100.50%.
The first green Confederation bond attracted serious demand with bids in the auction totalling CHF 974.05 million.
The allocation and impact reports will be published in the coming year, the Federal Finance Administration noted.
The debut placement was based on the framework for green bond issues which was approved by the Federal Council in the summer. Under the plan, Switzerland will issue notes worth several hundred million Swiss francs per year and will use the proceeds to support projects with a positive environmental impact.
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