Highlights:

• Germany will issue its second 10-year green benchmark bond in September (€ 3.5bn initially). This will further increase the outstanding volume of green German bonds to € 21bn (currently outstanding throughout euro area € 91bn). Hence, Germany is moving forward in the process of creating a complete green yield curve.
• The ‘twin concept’ pursued by Germany, according to which for every green bond there is a conventional one with the same maturity and coupon, is unique. This creates a higher degree of transparency.
• The greenium is around 5 bps across the curve indicating strong demand by investors and reflecting the additional transparency of green bonds.
• Spain will issue its first green bond in September. It will have a maturity of 20 years, the volume is not known yet. Further green bonds will be placed in the coming months.

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