Germany has designated DZ BANK AG and Deutsche Bank as the joint ESG coordinators for its forthcoming revision of the Green Bond Framework, set for release in 2025.
According to ESG News, this decision underscores Germany’s commitment to enhancing its already significant influence in the realm of sustainable finance. Since launching its first green bond in August 2020, Germany has successfully issued Green Federal Securities amounting to more than €73bn.
The Green Bond Framework supports Germany’s innovative “Twin Bonds” model, which offers both green and conventional bond alternatives. This model has garnered substantial interest from a diverse range of national and international investors, attributed to its robust framework quality, the issuer’s high ratings, and the bonds’ excellent liquidity.
Kai Poerschke, Senior VP SSA Origination at Deutsche Bank, highlighted the model’s appeal, stating, “The Twin Bonds concept with its Green Bond respectively conventional twin has already found great demand from all groups of national and international investors. The quality of the Green Bond framework, the extremely strong ratings of the issuer and the outstanding liquidity of the bonds are strong arguments which convince market participants.”
In addition, David Marques Pereira, Senior ESG Originator, commented on the strategic update: “By updating the Green Securities issuance programme, the Federal Republic of Germany is once again underlining its strong commitment to Sustainable Finance and its role as a promoter of the market for green financial products.”
Marcus Pratsch, Head of Sustainable Bonds and Finance at DZ BANK, also expressed enthusiasm about the initiative, noting, “The issuance of Green Federal Securities is an important part of the German Sustainable Finance Strategy and thus of Germany’s position as an international sustainable finance centre. We are pleased about the trust placed in us and the opportunity to support Germany as a leading financial centre in the important area of sustainability.”
This framework not only supports Germany’s environmental objectives but also aligns with its broader Sustainable Finance Strategy, positioning the nation as a pivotal player in global sustainable finance.
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