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Updated January 16th, 2024 at 17:28 IST

France set to garner €8 bn euros by issuing green bonds

This demand surpasses the previous record of 75 billion euros observed for a 50-year bond in 2021.

Business Desk
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France's green record: France is set to generate 8 billion euros from a recently issued green bond, breaking records as investor orders exceeded 98 billion euros ($106.61 billion), as confirmed by two lead managers on Tuesday. This demand surpasses the previous record of 75 billion euros observed for a 50-year bond in 2021. 

Throughout January, European governments have experienced robust demand for debt sales, signalling investors' eagerness amid expectations of significant central bank rate cuts in the coming year. This positive trend is beneficial for governments grappling with substantial funding requirements.

Earlier this month, Spain and Belgium also reported record demand for their respective deals. The new green bond from France, maturing on June 25, 2049, will offer a spread of 8 basis points over an existing French green bond set to mature in June 2044. This marks a reduction from the initial spread of around 10 basis points at the beginning of the sale, according to information provided by the lead managers.

Green bonds, which finance environmentally-friendly initiatives, have gained popularity in recent years, with numerous governments incorporating them into their financial strategies. France, being at the forefront, consistently emerges as a leading issuer of green bonds. The sale on Monday was facilitated by BNP Paribas, BofA, Credit Agricole, JPMorgan, and Societe Generale.

(With Reuters Inputs)

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Published January 16th, 2024 at 17:28 IST

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