Luxembourg, the first European country to issue sustainability gov’t bond – raises 1.77 billion dollars.

Stepping up to be the first one among all the European nations, Luxembourg became the first European government to sell a “sustainability” bond, raising 1.5 billion euros (1.7 billion dollar). The bond is formed keeping in mind the environmental as well as the social aspect. “Green” bonds are bought out in an effort to finance environmentally friendly projects, along with “social” bonds has the main focus to assist with various social beneficial outcomes – a completely different approach as compared to those of other European governments.
“We are seeing more interest to go down the social and sustainable route from sovereigns,” said Trisha Taneja, head of ESG advisory at Deutsche Bank, which managed the sale together with BCEE, BNP Paribas, BIL and Societe Generale. However keeping in view the current pandemic situation across the world, the “social” bond issuance are finding greater response, especially from development banks, as compared to the “green” bonds. But according to the administration of finance ‘Luxembourg will divide the proceeds equally between green and social projects’.

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