Belgian state raises €4.5 billion with green bond
The Belgian state has issued a green government bond (Linear bond or OLO) for the second time. Just like the first issuance, the green bond raised 4.5 billion euros, the Belgian Federal Debt Agency reports on Wednesday.
The Belgian government wants to use the green bond to finance investments that are good for the environment. Most of the proceeds will go to Belgian rail network operator Infrabel and national railway company SNCB, according to De Tijd.
The government loan has a maturity of over 16 years (until April 2039). The coupon or annual interest rate stands at 2.754 percent.
The first green OLO issuance dates back to February 2018. At that time, 4.5 billion euros was raised as well. The 2018 bond had a maturity of 15 years and a coupon of 1.289 percent.
The 2018 bond became the second-largest green government bond worldwide, following France. Green government bonds have since grown in popularity. In recent weeks, both Germany and Italy have launched new green issues.
(KOR)
Offshore wind farms in the Belgian North Sea © BELGA PHOTO JAMES ARTHUR GEKIERE