Greece’s green bond plans are positive but liquidity will be an issue

Issuance another milestone in the country’s return to capital markets

 
After initially planning to bring its debut green bond to the market this year, Greece is now looking to issue the deal in 2023, OMFIF understands. Almost every western European sovereign has issued green bonds, so Greece’s planned foray into this market is well overdue.

The deal could come in the early part of 2023, with Greece looking to press on and issue the deal as soon as market conditions are receptive next year. Volatile market conditions this year forced Greece to postpone its plans to sell its debut green bond. The deal will be issued via syndication with a maturity of eight to 15 years.

Greece will follow the conventional path of European sovereign green bond issuance – that is, adhering to the European Union taxonomy and structuring the deal from a classic green bond framework with a conventional structure and not, for example, the ‘twin bond’ concepts adopted by Germany and Denmark, where green bonds are sold alongside conventional bonds with the same size and maturity. Greece is understood to be targeting a ‘dark green’ grading for its green bond framework – the highest quality and grade available which reflects projects that are tailored towards a long-term vision of a low carbon future.

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Πηγή: omfif.org