The Minister of Economy and Business, Nadia Calviño, had already confirmed at the last Climate Summit (COP25) that the Spanish Public Treasury was preparing a green bond issue in 2020. She also indicated that the ecological transition will require about 236,000 million euros in investments over the next decade, according to the Energy and Climate Plan. Given the amount needed most of these investment are to be tapped from the private sector while the rest will be provided by public funding. These resources will be aimed at developing the infrastructure and ensuring a just transition.
During this week, the Public Treasury announced its financing strategy for 2020, with the objective of launching a first green bond issuance as part of a long-term funding program. The Treasury will follow market best practices in the design of the Green Bond Framework to be applied, based on the experience of other sovereign issuers and the work on harmonization undertaken at the European level. Furthermore, Spain, through the Public Treasury will take on strong commitments to transparency in reporting about the allocation of funds and the impact of investments. At the same time, issuance will comprise long-term bonds, perfectly consistent with the Treasury benchmark curve, and of a volume enough to provide them with maximum liquidity guarantees.
The Secretary-General of the Treasury, Carlos San Basilio, has indicated that the bond to be issued will be a 20-year bond that can be issued in the second part of the year. The aim is that this issuance becomes a reference, expecting to reach a total issuance of around 10,000 million euros, although he clarified that this is goal for the next few years, with a sequence of auctions in the near future.
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