Austria to issue Green Bonds for the first time in 2022 Green Bonds will be an additional bond offering
Austria is intending to issue a so-called Green Bond in the first half of 2022. “We took a joint decision to incorporate this step in our government programme,” announced Finance Minister Gernot Blümel whilst attending the Alpbach Forum. These types of bonds generate capital to finance undertakings to prevent or reduce damage to the environment and climate.
“Austria has a wealth of expertise in financing projects for sustainable purposes: our portfolio already contains a very high proportion of green investments, and there continues to be huge demand from investors for our government bonds,” said Blümel. “At the same time we look closely at every opportunity to further optimise our financing structure and thereby to add value for our taxpayers.”
The necessary preparatory work on the technical aspects of the issue has already been agreed and completed by the Ministry of Finance and the Austrian Treasury (OeBFA). The Finance Minister has now instructed the Austrian Treasury to form an interministerial working party to define the specific “green” projects to be financed. It should also finalise such details as the volume, term and form the bonds should take.
“The development and expansion of public transport and renewable energies, research and development or even the strengthening of sustainable agriculture are all potential investments that we can cover in a red-white-red green bond," declared Blümel. There would be targeted investment in an ecological transformation, he went on to say.