The first EU-branded green bond will see the light on 21 October. A date destined to become historic because, promises European Commissioner Johannes Hanh, "the European Union will soon become the world's first issuer of green bonds", with the aim of collecting 250 billion euros which will be used to finance a third of the development plans for 800 billion foreseen by the Next Generation Eu.
Just on Tuesday the machine that will have to guarantee the success of the project was set in motion more ambitious project of the history of the economic policy of the Old Continent, on which the political future depends, not only the financial one European Union. In a climate, among other things, of pressure on rates in view of Thursday's EU directorate. Yields on BTPs are up, this morning at 0,77%, the highest since mid-July. Ten-year French OATs, up to now below the zero rate, are back in positive territory.
In return Spain made its debut in the green bond segment placing 5 billion euro of a 20-year government bond with orders reaching 60 billion. The Spanish issuance followed those of Poland, the Netherlands, Germany, France and Italy, which have already experimented with sovereign issues of green bonds. The yield was set at 6 basis points on the government bond rate maturing in October 2040, the first indications were in the 9 points area.
This is just a first step. Before issuing a second green bond with a different maturity, the Spanish Treasury will leverage this inaugural green bond to around €12-15 billion, so that it is comparable to Spain's regular non-green sovereign issues and can provide investors with a sufficient liquidity.
Even Madrid, the first to issue a green bond after the summer, is signing up for the race destined to condition the savings market in the coming months. According to forecasts, the collection of green bonds could exceed 200 billion by the end of the year, under the eye of Brussels which will control the destination of the funds raised. In this regard, Commissioner Hahn underlined that it was decided to exclude nuclear projects among the possible recipients of the funds. The same fate will befall investments for the exploitation of natural gas. On the contrary, at least 37 of the collection will end up supporting projects on mobility, environmental protection in the strict sense and energy efficiency.
Beyond the card offered by the EU, green bonds look set to crowd out traditional supply. After the Spanish issue, a new ten-year offer from Germany started this morning, with the aim of proceeding with the creation of a real green yield curve, a project also declared by the Spanish Treasury. Even Great Britain is preparing to enter the field, awaiting the debut of the European Community. Already today, in anticipation of D-day on October 21, global green bond issues have recently passed the $1.000 trillion mark, of which 90% at the sovereign level comes from Europe. Last clue: the greenium index UniCredit's share rose to 4 points, its high, suggesting that demand for green bonds is such that investors are willing to pay a premium to buy green European debt.
