COPENHAGEN, December 8 (Reuters) – Denmark will issue its first green bond early next year, a move that will help finance the Nordic country’s transition to carbon neutrality and a sustainable economy, the central bank said on Wednesday.
The 10-year green bond will be issued on January 19, 2022, with a coupon of 0.00% and due November 15, 2031, subject to stable market conditions, the central bank said.
“With a green bond, the Danish government is offering a product that is in high demand by investors and which can support a large and well-diversified investor base,” Deputy Central Bank Governor Signe Krogstrup said in a statement.
The exact issue volume of the new bond, which will be a “twinned bond,” issued with the same characteristics as the country’s conventional 10-year benchmark bond, will be announced by the government later in December.
The concept of a twin bond, which Germany also launched last year, means that an investor can at any time replace the green bond with the more liquid conventional bond, but not the other way around.
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Reporting by Nikolaj Skydsgaard; Editing by Andrew Heavens
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