Baden-Württemberg issues 600 million euro green bond

The German state of Baden-Württemberg has placed a 600 million euro green bond on the capital market. This ten-year bond is the state's sixth green bond and marks the first to follow the new European Green Bond Standard.

Demand for the bond significantly exceeded supply, with investors seeking more than three times the offered amount. Approximately 90 percent of the volume was purchased by investors specifically targeting ecologically sustainable assets. The bond carries a nominal interest rate of 3.625 percent.

The proceeds will be used to refinance 27 existing environmental and climate protection projects across five ministries. These projects include energy-efficient new constructions, the expansion of bicycle paths, and measures to help forests adapt to climate change. The selected projects cover five of the six environmental objectives defined by the European Union.