France issues EUR-7bn green bond

France has issued a EUR-7-billion (USD 7.5bn) sovereign green bond amid strong demand, with order books at EUR 23.5 billion.

France's initial move into the green bond market has exceeded all expectations, the Climate Bonds Initiative (CBI) said on Tuesday as it hailed the deal marking the largest green bond ever.

In addition to its impressive size, France's June 2039 green OAT (Obligation assimilable du Tresor) is also characterised by long tenor and keen pricing, the latter as indicated by initial media reports.

"France went to market looking for EUR 3bn, a week ago it said it wanted a minimum of EUR 2.5bn. It’s printed EUR 7bn — talk about evidence of demand," CBI chief executive Sean Kidney said, adding that the move provides a "fantastic" template for other governments.

Estimates for green bond issuance in 2017 range from USD 130 billion to almost USD 200 billion and the French bond makes a healthy January, the CBI said.

(EUR 1.0 = USD 1.072)

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