The European Union today launched the first maxi green bond. The issue is worth a total of 12 billion euro and has a 15-year maturity. It will serve to finance part of the Next Generation EU plan with which Brussels puts 750 billion euros on the plate to help the EU economy recover from the pandemic crisis. The goal of the European Commission is to raise 250 billion euros by 2026, about a third of the entire plan. The issue was announced arousing enormous interest from investors: the response was immediate, with demand exceeding supply by 10 times, surpassing the 120 billion mark.
The success of the bond will allow the EU to save on interest, placing the bond with a lower yield than initially expected.
The transaction is being handled by Bank of America, Credit Agricole, Deutsche Bank, Nomura and Td Securities as joint lead managers.
