The Netherlands said it was issuing its first "green bond" on Tuesday, becoming the first top-rated country to tap into a growing market for investments in environmental projects.

It is aiming to raise between four and six billion euros ($4.5 billion to $6.7 billion) up to July 2040, according to HSBC, one of the banks handling the operation, although the Dutch government did not immediately give a figure.

The Netherlands is the fifth country to issue environmentally friendly sovereign debt after fellow EU nations Poland, France, Belgium and Ireland.

"The Netherlands is today the first triple A country to issue a green bond," Dutch Finance Minister Wopke Hoekstra said on Twitter, referring to its international bond rating.

The Dutch finance ministry added: "With green bonds we finance green expenditures and we stimulate the green capital market. A new step towards a greener economy and a greener Netherlands."

Climate change and the environment are pressing issues for the Netherlands, where at least a third of the country lies below sea level.

Analysts said the Netherlands' first green bond set a high bar for other countries because of its tough environmental standards.

"We are looking at this green bond with a very favourable eye, particularly because it is the first sovereign green bond with such strict conditions," said Bram Bos, a portfolio manager at NN Investment Partners.

Hoekstra said earlier this year that these "dark green bonds" would only finance projects that meet specific criteria such as such as making a "substantial contribution to reducing CO2 emissions."

Green bonds -- where governments sell debt specifically earmarked for environmental projects -- launched a decade ago but the overall share of green instruments in global finance remains small.

They accounting for only $156.8 billion or two percent of the global bond market, according to HSBC.

Poland was the first country to enter the green bond market with a more modest 750-million-euro issue in December 2016.

burs-dk/rl

NN GROUP

HSBC

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

China's economy shows further weakness as retail sales struggle
Beijing (AFP) May 15, 2019
China's economy showed further signs of weakness in April as the slowest growth in retail sales for 16 years highlighted the task leaders have in ramping up domestic demand at the same time as fighting a painful trade war with the US. Authorities have for years been attempting to transition the world's number two economy from being reliant on state investment and exports to a more stable one driven by China's huge army of consumers, with the tariffs stand-off reinforcing the need for such a change. ... read more