New issue of a 30-year Green Federal bond 2021 (2050) - Increase of the conventional Federal bond 2019 (2050)
Press release of Bundesbank & Finanzagentur
11 May 2021
The Federal Government has issued a 30-year Green Federal bond for the first time today. The Green Federal bond has a coupon of 0 %. The value date is 18 May 2021. The bond will mature on 15 August 2050. An issuance volume of € 6.0 billion at a reoffer price of 89.215 % was allocated (including a retained volume of € 0.5 billion).
The placement of the Green Federal bond with national and international investors was carried out by a syndicate of banks under the lead management of BNP Paribas, BofA Securities, Citi, Commerzbank, DZ BANK und HSBC. The amount retained by the Federal Government will be used to support the liquidity in the secondary market through appropriate activities of the German Finance Agency.
The Federal Republic of Germany spent an amount equal to the proceeds derived from the issue of the Green Federal bond for expenditures that comply, on the date of the issue of the Green Federal Bond, with the requirements stipulated by the Federal Republic of Germany in its Green Bond Framework dated 24 August 2020.
Deviating from Article 1 sentence 1 (Placing) of the issuance terms and conditions of 21 December 2012 (the "Issuance Terms and Conditions"), the Green Federal bond will not be issued by the "Auction Process", but through the syndicate in the "Syndication Process". The conditions of the Green Federal bond and such deviation from the Issuance Terms and Conditions (the "Deviation") were determined in the Syndication Process and are published by Deutsche Bundesbank by this press release. The fixed conditions and the Deviation are part of the Issuance Terms and Conditions of the Green Federal bond.
Furthermore, with effect from 18 May 2021, the outstanding volume of the conventional twin bond, the 0 % Federal bond 2019 (2050), ISIN DE0001102481, is increased by € 6.0 billion. This increase will be added to the Federal Government's own holdings.
Characteristics of the new 30-year Green Federal bond
Issuer: Federal Republic of Germany
Issuance volume: € 6.0 billion (of which retained amount: € 0.5 billion)
Maturity: 15 August 2050
Coupon: 0.00 %
Trade date: 11 May 2021
Value date: 18 May 2021
Start of interest rate period: 15 August 2020
Interest payment dates: 15 August annually
First interest payment date: 15 August 2021
Reoffer price: 89.215 %
Reoffer yield: 0.391 %
Due to the coupon of 0% the separation of the Green Federal bond into principal and interest payments ("stripping") is not possible.