By Emese Bartha
FRANKFURT (Dow Jones) — The federal government pocketed 4 billion euros in the syndicated process on Wednesday when increasing a “green” long-distance product. There was talk of great demand in retail. A green federal bond with zero interest, which is due in August 2050, was increased, as one of the syndicate banks announced. The yield adjusted to 1.365 percent. The interest rate differential on the debt was 2 basis points below its conventional twin – a 0 percent Bund also maturing in August 2050.
The 2 basis point spread on the conventional twin represents a green premium for investors and is in line with what was indicated before the books opened this morning. Green Bunds have a twin structure to their conventional counterparts, which means that both bonds have identical maturities and coupons. Barclays, Commerzbank, Credit Agricole CIB, HSBC, Morgan Stanley and Nomura acted as underwriters.
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(END) Dow Jones Newswires
June 01, 2022 08:42 ET (12:42 GMT)