The German government will issue the first green sovereign bonds in September and expects to issue a volume of between 8 and 12 billion euros by 2020, informed the Finanzagentur des Bundes (similar to the Treasury).

The maturity of the green bonds will be ten years; these debt securities aim to be a green twin of the conventional German ten-year bond, the “Bund”.

Due to state support measures to deal with the economic effects of the COVID-19 pandemic, the German government is in greater need of financing and will be borrowing more this year.

Germany also plans to issue a second green bond in the fourth quarter, which will finance sustainable green, environmental and climate protection projects with a maturity of five years.