Greece mulling issuance of first green bond in 2023, debt agency says
Greece is contemplating issuing its first green sovereign bond in 2023 to support the implementation of its sustainability agenda and enhance its funding strategy, the country’s debt agency PDMA said in its report for its Funding Strategy for 2023 on Thursday.
“Greece is committed to reducing greenhouse gas emissions by 55% by 2030 and achieving net-zero by 2050, as outlined in the May 2022 Climate Law. In addition, issuing green bonds can finance the implementation of Greece’ sustainability strategy, which involves public investments,” PDMA said it its report.
By issuing Greece’s first green sovereign bond, PDMA aims to “align the state’s financial policy with national sustainability targets by further confirming its commitment to a sustainability agenda” and by facilitating the monitoring of progress made under Greece’s ESG strategy.
It also hopes to strengthen Greece’s investor base, by addressing institutional investors’ rising ESG standards, and by reaching out to new types of investors and to jointhe few Eurozone member states already present on the sovereign green bond market.
Greece’s financing needs for 2023 amount to 15.4 billion euros, according to PDMA’s report. Of this, 7 billion euros will be financed by new medium- and long-term bonds, while 4.2 billion euros will be financed by other sources such as RRF, EIB, and so on. In addition, the Finance ministry expects to collect 2 billion euros through privatization receipts.
