COPENHAGEN: Denmark will issue its first green bond early next year, a move which will help finance the Nordic country's transition towards carbon neutrality and a sustainable economy, the central bank said on Wednesday.
The 10-year green bond will be issued on Jan. 19, 2022, with a coupon rate of 0.00% and a maturity on Nov. 15, 2031, contingent on stable market conditions, the central bank said.
"With a green bond, the Danish government offers a product that is in high demand among investors and that can support a broad and well-diversified investor base," deputy central bank governor Signe Krogstrup said in a statement.
The exact issuance volume of the new bond, which will be a so-called 'twin 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 twin bond concept, which Germany also launched last year, means an investor can switch the green bond for the more liquid conventional bond at any time, but not vice-versa.
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