{"id":8519,"date":"2025-09-05T08:17:20","date_gmt":"2025-09-05T12:17:20","guid":{"rendered":"https:\/\/sdgnews.com\/?p=8519"},"modified":"2025-09-05T08:17:22","modified_gmt":"2025-09-05T12:17:22","slug":"denmark-set-to-issue-worlds-first-sovereign-green-bond-under-eu-standard","status":"publish","type":"post","link":"https:\/\/sdgnews.com\/ru\/denmark-set-to-issue-worlds-first-sovereign-green-bond-under-eu-standard\/","title":{"rendered":"Denmark Set to Issue World\u2019s First Sovereign Green Bond Under EU Standard"},"content":{"rendered":"

10-year instrument aligns fully with EU Taxonomy as Copenhagen raises bar for sovereign sustainable finance<\/p>\n\n\n\n

In Copenhagen, the Danish government is preparing to test global markets with a precedent-setting deal: the world\u2019s first sovereign green bond issued under the European Green Bond Standard (EuGBS)<\/strong><\/a>. The 10-year instrument, expected in the second half of 2025 via syndication, will make Denmark the first country to embed the EU\u2019s strict new green bond rules directly into its sovereign borrowing program.<\/p>\n\n\n\n

The bond will raise up to DKK 10 billion (\u20ac1.3 billion)<\/strong> this year, with proceeds directed toward green government spending across energy transformation, sustainable transport, agricultural land conversion, and nature restoration.<\/p>\n\n\n\n

A higher bar for green finance<\/h3>\n\n\n\n

Denmark\u2019s updated framework, known as the European Green Bond Factsheet<\/em>, has been externally reviewed by Sustainable Fitch. It confirms full compliance with both the EU Taxonomy regulation and ICMA\u2019s widely used Green Bond Principles.<\/p>\n\n\n\n

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\u201cWith the upcoming issuance, the Danish state actively supports a common European language for green investments. The European Green Bond Standard creates transparency and trust in the market \u2013 and the Danish state is leading the way by adhering to the highest standards, thereby supporting the development of green capital markets,\u201d <\/em>said Signe Krogstrup, Governor of Danmarks Nationalbank.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Unlike earlier green frameworks, the EU Standard is legally binding and requires all proceeds to be linked to activities deemed fully sustainable under the taxonomy \u2014 from offshore wind subsidies to railway electrification and carbon-sequestering wetland projects.<\/p>\n\n\n\n

Market structure and liquidity<\/h3>\n\n\n\n

The new green bond will be issued as a twin<\/strong> to Denmark\u2019s existing conventional 10-year bond (DGB 2.25% 2035), sharing the same maturity date and coupon but traded separately. This \u201ctwin bond\u201d structure \u2014 already used in Denmark\u2019s prior green bond program \u2014 is designed to ensure liquidity and flexibility for investors, reducing the common liquidity premium that has deterred some large institutions from entering the green bond market.<\/p>\n\n\n\n

BNP Paribas, Nordea, and SEB advised Danish authorities in updating the framework, with SEB highlighting the broader significance. <\/p>\n\n\n\n

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\u201cDenmark\u2019s approach underlines how sovereign issuers can demonstrate leadership in mobilising capital for a sustainable future,\u201d<\/em> said Lars Eibeholm, Global Head of Sustainable Debt Capital Markets at SEB<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n

Why this matters for policymakers<\/h3>\n\n\n\n

The European Green Bond Standard, introduced in late 2023, was designed to tackle longstanding concerns about \u201cgreenwashing\u201d by setting a uniform rulebook for issuers. Unlike ICMA\u2019s voluntary principles, the EuGBS is binding for those who adopt it, demanding high levels of disclosure and external review.<\/p>\n\n\n\n

Denmark\u2019s decision to be the first sovereign mover carries three key implications:<\/p>\n\n\n\n